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Monday, 8 July 2013
Dollar Declines From 3-Year High; Euro Gains Amid Risk Appetite
By Joseph Ciolli - Jul 8, 2013 6:16 PM GMT+0400
The Dollar Index fell from a three-year high amid speculation it climbed too far, too fast after a report last week showing stronger-than-forecast U.S. job growth fueled bets the Federal Reserve will soon slow its stimulus.
The euro advanced for the first time in three days versus the dollar as risk appetite increased and European and U.S. stocks rose. The dollar declined versus most major peers. Fed Chairman Ben S. Bernanke is scheduled to speak on economic policy on July 10, the same day the central bank will release minutes of its last policy meeting.
July 8 (Bloomberg) -- Khiem Do, Hong Kong-based head of Asian multi-asset strategy at Baring Asset Management Ltd., talks about the outlook for Asia stocks and his investment strategy. He speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
“There’s been profit-taking after a strong dollar late last week,” Brian Daingerfield, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit, said by phone from Stamford, Connecticut. “This may also be a bit of a retracement after a pretty big move on Friday. Stronger U.S. data is improving growth prospects in the U.S., but also improving sentiment for risk-oriented currencies.”
The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six major U.S. trade partners, declined 0.2 percent to 84.306 at 10:15 a.m.New York time after reaching 84.588 earlier, the highest level since July 2010.
The euro advanced 0.3 percent to $1.2863 and rose 0.2 percent 130.07 yen. The U.S. dollar was little changed at 101.14 yen after rising earlier to 101.53, the strongest since May 30.