The greenback has been under pressure this week after reports in August showed that U.S. service sector activity reached its lowest level since early 2010. At the first week of the month the USD ticked higher against all major currencies with the buck index showing its strength against a basket of six major currencies, ticking up to 95.19.
The dollar moved higher against the yen gaining 0.47% to hit the 102.95 level, as the investors traded with caution after North Korea announced that it had carried out a nuclear test.
The EUR/USD showed no changes and remained flat at 1.3254. The Euro is the only currency held steady after the European Central Bank declared it has not discussed extending its stimulus program.
The U.S. dollar rose to its highest point since April 2003 against the common currency after expectations of raising interest rates next month by Federal Reserve found support from solid inflation data. Excon Fuji Securities expectations of higher interest rates typically boost a U.S. dollar rally and make it attractive for investors.
By the end of the month, the U.S. dollar started pulling back against most of major currencies. The EUR/USD pair demonstrated a little change from 1.3218 to 1.3153, while the USD/JPY has gained 0.30% and moved to 93.32. In addition, the USD/CHF has gained 0.52% and moved to 0.9711, while the GBP/USD remained steady at 1.4220. The AUD/USD and NZD/USD crosses were stronger gaining 0.33% to 0.7659 and 0.23% to 0.7271 respectively.
