Dollar gains as weak economic data drives investors to safety

The dollar rose against other currencies as investors turned to safety after data revealed a worsening economic activity.

The dollar index showed a 0.2% gain, at 99.831. The euro fell 0.25%, at $1.0881 and the pound dropped 0.2%, at $1.2482. The dollar gained 0.4%, at $107.86 against the Japanese yen.

U.S. retail sales fell 8.7% in March, underscoring fears of deeper economic damage.

The Australian dollar lost 0.4%, at $0.6293. The New Zealand dollar was down 0.6%, at $0.5961 after central bank governor Adrian Orr said that negative interest rates were considered in battling economic fallout.

The Canadian dollar traded at C$1.4116 per US dollar while the Mexican peso lost 1.7%, at $24.4030.

The market mood was affected by the data on weak economic activity. However, investors remained hopeful that the pandemic is nearing its peak as countries globally, including the United States, plan to re-open their economies as soon as possible.