On Friday, the week’s dollar sell-off continued, as the greenback hit a fresh 12-month low.

The latest indicator to investors that the worldwide slowdown is drawing to a close is an accelerating economy in China, and they avoided the “safe” dollar in favor of gold, by which an 18-month high level has been hit, as well as other commodities and riskier currencies.

The dollar has fallen quickly throughout the week, and it has dropped nearly to 2 percent against the euro. After earlier hitting a new 2009 high level of $1.4634, on Friday morning, the euro rose to $1.4600 from $1.4585 late Thursday.

Meanwhile,the British pound,  has shown a rise up to $1.6699 from $1.6665, while the dollar fell from 91.74 yen to 90.32 Japanese yen, which is its lowest point since February.

Against a basket of major currencies the dollar index fell to a 12-month low, as it has every day this week in American trading. Against six major world currencies dollar fell as low as 76.5. These currencies includes the euro, yen, Canadian dollar, British pound, Swedish krona and Swiss franc. Since last September that’s its lowest level.

Since the Group of 20 finance officials pledged last weekend to maintain government spending, low interest rates and expansion of the money supply in order to buck up the global economy, investors have been favoring foreign currencies as stock markets rose steadily.

Such type of moves could help in boosting economic activity and liquidity in financial markets, and this will in turn increases investors’ appetite for assets around the world at the expense of the dollar, which is widely considered as a safe haven for investors.

Meanwhile on Friday, investors favored riskier trading as the Chinese economy showed signs of strength. It has been revealed by the official Chinese data that the industrial production grew faster in August, while retail sales surged more than 15 percent.

In other trading, the dollar has shown a decline to 1.0361 Swiss francs from 1.0387 francs, and it drops to 1.0724 Canadian dollars from 1.0790 late Thursday.

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