US Dollar out performs other currencies in the forex market; how did other currencies behave?

The forex market experienced USD dominance yet again. After statistical reports of countries around the world were made public, only the American economy seemed to be healthy due to which USD jumped in the forex market. The NPR stood at Rs.113.10 against one USD on Tuesday. However, USD was at a low of Rs.109.77 on August 1, 2019.

While, Eurozone is facing the worst slowdown in its manufacturing industry in the past seven years, the value of euro (EUR) remained unstable. Similarly, as the central bank of Australia had decided to cut interest rates, the Australian Dollar (AUD) suffered loss in the currency market. The New Zealand Dollar fell to its lowest in the last four years.

As the dollar became stronger, currencies of emerging markets were also affected. Currencies of South Africa, Turkey, Russia and India fell from 0.3% to 0.8%.

As the major markets in Europe were falling, markets in Asia had mixed behavior. The bond and debentures market was positive as interest yields improved. The T-Bills of Germany, France, Spain and America increased return by 2 to 4 base points.