By: Barbara Zigah
The U.S. Dollar remains near the lowest price of the year versus the single currency Euro in Asian trading today, generally attributed to improvement in the overall health of the global economies. Since March 2009, the U.S. Dollar has slipped versus major currencies as the safe haven demand for the greenback has eroded and investors seek profits in higher-yielding currencies. The U.S. Dollar Index, a measure of the U.S. currency versus a basket of six major currencies, slipped to 77.640 .DXY, a decline of nearly .2% and approaching 77.451 .DXY, a 10-month low, touched on earlier in the week. As reported at 1:26 p.m. (JST) in Tokyo, the U.S. Dollar held steady against the Euro, near yesterday’s low of $1.4411 in the New York market.
According to one foreign exchange strategist in Tokyo, the improved global economies don’t bode well for the U.S. Dollar, especially given that inflows of capital into the American economy have been subdued, and while the fiscal deficit continues to grow. One forex trader in Japan noted that positive economic data naturally pushes investors toward risk, which accounts for firmness in higher yielding currencies, including the Australian and New Zealand Dollars, both of which are enjoying 10-month highs versus the U.S. Dollar in trading this week.
U.S. Dollar Continues to Slide on Improved Economic Outlook
Barbara Zigah
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About Barbara Zigah
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.