USD loses ground on rising stock prices


As reported at 8:52 a.m. GMT, the USD lost ground versus the Euro and other high yielding currencies in early morning trading today, as equity markets sought to recover some significant losses from yesterday’s trading day.  Nonetheless, trading activity was somewhat restrained because investors are taking a wait-and-see stand, with the expectations that continuing concerns about the health of the various financial systems and a worsening global recession will curtail any movement into risky assets.

The USD Index (.DXY), which gauges the strength of the USD versus a group of major currencies, touched on a 3-year high during overnight trading, proof that investors are seeking safe haven in the most liquid currency in the world.  

Australia’s central bank (Reserve Bank of Australia) also unexpectedly kept interest rates unchanged at 3.25% yesterday.  Investors had been hoping for a rate cut, but according to a RBA spokesperson, it was believed that the stimulus plan already in place is working and there was no immediate need for another rate cut.  Accordingly, the Aussie saw some gains across the board.  According to one foreign exchange strategist, there was a small overnight surge in risk appetite with American stock futures up, despite yesterday’s falls, and higher yielding currencies are outperforming their low-yielding counterparts. 

At 08:26 a.m. GMT, the USD Index lost .66% at 88.443 .DXY.  The Australian Dollar gained a significant 2.27% versus the U.S. Dollar, trading at $.06436 and saw a gain of 2.46% versus the JPY, trading at 62.98 Yen.
Comments

Did you have a good experience with this broker? A bad one? Tell our team and traders worldwide about your experience in our User Reviews tab. Your email address will not be posted.

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments
Add Comment

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.