Reuters

Asia’s factories cranked up production in August as global demand remained strong, confounding expectations that growth may have peaked.

The euro’s rise above $1.20 this week has prompted talk that it is becoming a safe haven for investors, posing a problem for the European Central Bank as it plans to roll back its huge economic stimulus in the coming months.

he dollar edged down on Friday after tepid U.S. economic data casts doubts on whether the Federal Reserve will raise rates again this year.

Euro zone inflation rose more than expected in August, official data showed on Thursday, just as the European Central Bank prepares to debate whether to tighten policy after 2-1/2 years of unprecedented stimulus.

The dollar held near a two-week peak against the yen and below $1.19 per euro on Thursday, a broad recovery since Tuesday helping it end August close to flat against its major peers.

Investors discovered a taste for the dollar and commodities on Thursday as upbeat Chinese and U.S. economic news whetted appetite for riskier assets globally, even as tensions over North Korea simmered in the background.

Growth in China’s manufacturing sector unexpectedly accelerated in August, suggesting the world’s second-largest economy is still expanding at a healthy clip despite rising financing costs and a cooling housing market.

Tropical Storm Harvey further damaged the heart of the U.S. energy industry on Wednesday, churning into Louisiana after flooding the biggest U.S. refinery in Texas, forcing major pipelines to halt operations and threatening a supply squeeze for weeks.

The U.S. dollar rose broadly on Wednesday on speculation the European Central Bank could step in to weaken the euro and after strong U.S. economic data boosted expectations for a solid U.S. jobs report Friday.

The U.S. economy grew faster than initially thought in the second quarter, notching its quickest pace in more than two years, and there are signs that the momentum was sustained at the start of the third quarter.