Dollar Gains as China Makes Traders Cautious
The US dollar gained today as signs of an economic slowdown in China damped risk appetite of investors and made them to return to the safety of the US currency that is supported by the positive outlook for the nation’s economy.
BHP Billiton signaled that steel production in China is slowing, sending markets in a risk aversion mode. The Standard & Poor’s 500 Index slipped 0.3 percent, following the earlier decline by 0.9 percent. The Dow Jones Industrial Average lost 0.5 percent.
The US currency profited from the cautious stance of Forex market participants that followed the news. The greenback was a little soft recently because of optimism on the FX market and a bit of bad news is useful for the currency.
EUR/USD was at about 1.3227 as of 22:26 GMT today after falling from 1.3236 to 1.3172. GBP/USD was down from 1.5890 to 1.5860, while the intraday low was 1.5830. USD/JPY went higher from 83.39 to 83.71.
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Earlier News About the US Dollar:
- Absence of Quantitative Easing Results in Good Week for Dollar (2012-03-17)
- US Dollar Pulls Back in Forex Trading (2012-03-15)
- Dollar Jumps as Fed Refrains from QE (2012-03-14)
- US Dollar Mixed, But Mostly Higher (2012-03-12)
- US Dollar Rises as Quantitative Easing Becomes Less Likely (2012-03-09)