SINGAPORE/TOKYO/HONG KONG—The safe-haven U.S. dollar hit a one-week high on Tuesday after weak global economic data, particularly in China, reignited global recession fears and weighed on risk-friendly currencies like the Australian dollar.
The dollar index, which measures the greenback against six major peers, hit a peak of 106.81 in early European trading, regaining all its losses from last week when lower-than-expected U.S. inflation data sent investors out of the dollar and back towards risk-friendly assets.
The index was last up 0.12 percent at 106.6.
“The U.S. growth picture is still intact, but the overall global picture remains fragile, given concerns about China, and that has put a dampener on risk sentiment and hurt the Aussie and some emerging market risk currencies,” said Sim Moh Siong, currency strategist at Bank of Singapore….