The U.S. dollar had a weak performance today losing against most of the major traded currencies, as stocks rose for a third day, mainly in Asia, damping demand for the greenback.
The U.S. currency lost today against 14 of the 16 main currencies, after Dallas Federal Reserve Governor Richard Fisher is likely to include in the next central bank statement that interest rates in the United States will remain at exceptionally low levels, disagreeing with previous forecasts that mentioned an eventual rate hike to follow in the second semester, as long as the rates remain at the present levels, the attractiveness of the greenback is likely to fade, as investors will tend to purchase higher-yielding options. The Australian dollar was one of the biggest winners against the greenback this Friday as commodities prices rebounded, spurring demand for assets in that country.
The current recovery in the stock markets brought risk appetite once again to high levels among traders, which were recently opting for the greenback as a safe refuge during downmarket days, adding to that, lowered expectations for the Fed benchmark interest rate damped even more the weakening demand for the U.S. currency. Analysts affirm that the dollar might enter a new bearish period, if risk aversions continues to fade.
EUR/USD fell and traded at 1.4036 as of 9:41 GMT, from yesterdays rate of 1.3945. AUD/USD followed the same path and rose from 0.7955 to 0.8041.
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