(Reuters) The dollar ended little changed on Wednesday after reaching a 13-month peak against a basket of currencies as investors briefly added to their safe-haven holdings of the greenback on worries about slowing Chinese growth and Europe’s exposure to Turkey.
Upbeat figures on domestic retail sales, manufacturing output and worker productivity also supported the greenback and the view of steady U.S. economic growth.
The dollar’s initial gains faded as the euro recovered following news that Qatar pledged to invest $15 billion in Turkey. This move is seen supportive of Turkey’s banking system and reduced anxiety about European banks’ exposure in Turkey. It helped euro to rebound from a 13-month trough versus the dollar and Swiss franc.
Qatar’s financial commitment, together with planned talks between Turkish and German officials and hopes to an end to the tension between Ankara and Washington, “are euro-positive developments,” said Juan Perez, senior currency trader at Monex Consulting in Washington.
