Euro rose on Tuesday against a basket of world currencies to widen its gains for a third consecutive day to a four-week high against USD as concerns about global trade tensions eased, especially after the recent US-Mexico trade deal. Reduces the appetite to buy the US currency as the best alternative investment at the time of escalating risks in the financial markets.

Euro rose against the dollar by more than 0.1% as of 07:45 GMT, trading at $ 1.1690, the opening price of $ 1.1677, the highest at $ 1.1699 since August 1 and the lowest at $ 1.1662.

Yesterday, the euro gained 0.5% against the US dollar, its second consecutive daily gain, as the US currency continued to sell against most major and minor currencies.

Euro managed to add 1.6% against the dollar last week, its second consecutive weekly gain, and the biggest weekly gain since January, as the US currency was widely sold.

Investors sold the green currency after US President Donald Trump criticized the Federal Reserve for raising interest rates as the US government tries to stimulate the economy and boost global competitiveness of US companies.

The dollar index fell 0.1% on Tuesday, extending its losses for the third day in a row, reaching a four-week low of 94.57 points as the US currency continued to sell against most major and minor currencies.

The pressure on USD is now dampened by fears of global trade tensions, especially after the recent agreement between the United States and Mexico on free trade reform in North America, reducing demand for the US currency as the best alternative investment at a time of heightened risk in financial markets.

The decline in global trade tensions is also working to reduce risks on the path of eurozone economic recovery. The ECB has recently focused on warning about the negative impact of these risks on the economy, reducing the chances for the Bank to begin normalizing monetary policy.