The latest news out of China, with money market rates on the rise, is prompting gains for the greenback today. Indeed, there is enough concern about liquidity that many Forex traders are looking for safe haven, and buying the dollar for the stability.
US dollar took a hit after the release of September payrolls data yesterday. The latest numbers indicate that the Federal Reserve is unlikely to begin tapering its asset purchase program. This contributes to dollar weakness, but the focus today is mainly on China, and the rising market rates.
China’s short term money market rates are spiking, and the People’s Bank of China still has not offered a cash injection to improve liquidity. The lack of action on the part of China is causing consternation, and a bit of concern.
With all of the concern, the US dollar is back in demand. As a safe haven, the greenback is still considered the most stable currency in the world, and many Forex traders are shoring up their positions.
At 15:50 GMT the US dollar index is up to 79.2660 from the open at 79.2610. EUR/USD is down to 1.3779 from the open at 1.3781. GBP/USD is down to 1.6170 from the open at 1.6236. USD/JPY is down to 97.2900 from the open at 98.1355.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
Be First to Comment