After gaining slightly versus most of the 16 main traded currencies yesterday as stocks fell and risk appetite declined, today market trends reverted, attracting investors to yield and setting a new record low for the dollar versus the euro in 2009.
Most of the main traded currencies, and specially the high-yielding ones linked to commodities and stocks performance climbed today versus the greenback after the Asian Development Bank affirmed that economies in the continent may experience a faster economic rebound than previously forecast, improving traders’ confidence to return to riskier assets, making currencies like the Australian dollar and the Brazilian real to rank among the biggest winners in foreign-exchange markets today. The New Zealand dollar also climbed to a record high versus the greenback as national accounts provided the best data since the beginning of the global slump last year.
The situation for the dollar in currency markets is likely to remain bearish, according to analysts. The optimism is currently one of the biggest villains for the U.S. dollar, as it provides confidence for investors to leave dollar-priced positions, which are considered safe, in trade for riskier assets that once again became attractive, as they profit margins are likely to be backed by the global economic recovery.
EUR/USD traded at 1.4795 as of 11:29 GMT from an intraday rate of 1.4630. NZD/USD traded at 0.7214 from 0.7035.
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