Dollar On Record Low after G-20 Agreement

  November 09th, 2009 at 18:22, Jan Baros

US DollarThe dollar lost versus most of main traded currencies as the Group of 20 will extend measures to stimulate the global economy, adding confidence among investors to purchase riskier assets, consequently affecting the attractiveness of the greenback.

The most affected currencies by the G-20 statements were those of safer profile and the lowest yielding options in foreign-exchange, as its the case of the greenback and the Japanese yen, which have been sequentially losing value during the past few months as economic fundamentals worldwide attracted investors to riskier positions as the economy is improving in most of the key-countries in every continent, leaving the both the dollar and the yen “forgotten” to a certain extend. The euro was one of the biggest winners in today’s session, as Germany, by far the most significant economy of the region, posted an improved number of exports for the month of September, surprising traders positively, and setting the Euro to the highest rate in 15 months versus the dollar.

The Group of 20 measures are just another event favoring high-yielding assets not only in currency, but also in stocks and commodities markets, and that is a negative point for the dollar’s outlook, according to most analysts. The dollar is likely to experience further down sessions if risk appetite remains high for the following days.

EUR/USD traded at 1.5005 as of 16:16 GMT from a previous rate of 1.4845 when markets opened yesterday. USD/CAD traded at 1.0554 from 1.0727.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

  Categories

US Dollar

Leave a Comment

Name Required

Email Required

Website

Comment

Archives

SUBSCRIBE

Follow Top Forex News on Twitter T