Dollar Retreats as Risk Aversion Recedes
The US dollar fell today, following yesterday’s gains on risk aversion. Today, traders were a bit more courageous after Hurricane Sandy hit the United States and damage was assessed. Positive US fundamental data also dampened need for safer assets.
Sandy made a landfall and some experts speculated that damage was smaller than was expected. Market participants anticipated more severe consequences and now are selling dollars that they were hoarding before the cyclone hit the US shore. The Dollar Index declined 0.4 percent to 79.89.
The Forex emerged from the risk-off mode also on signs that the US housing market continues to improve. The S&P/Case-Shiller Home Price Index rose a little from 142.01 in July to 142.7 in August. The gauge was up 2 percent on an annual basis.The US dollar fell today, following yesterday’s gains on risk aversion.
EUR/USD climbed from 1.2902 to 1.2959 and GBP/USD ticked up from 1.6030 to 1.6069 as of 21:11 GMT today. USD/JPY went down from 79.78 to 79.60.
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Earlier News About the US Dollar:
- US Dollar Gains Ground on Continued Uncertainty (2012-10-29)
- Dollar Rallies Despite Positive Market Sentiment (2012-10-26)
- US Dollar Index Inches Higher on Risk Aversion (2012-10-24)
- Risk Aversion Boosts US Dollar as Stocks Drop (2012-10-23)
- US Dollar Eases on Optimism and Increased Risk Appetite (2012-10-22)