Corporate foreign exchange news
Dollar climbs on equities weakness
Wednesday, 02 September 2009 09:22:05 GMT

The dollar climbed during forex trading yesterday (September 1st) as US equities entered a tailspin on Wall Street.The move to safe-haven currencies such as the dollar came despite improved manufacturing figures for August, with the S&P 500 and the Dow Jones Industrial Average indices both dropping about two per cent during the day.Weakness in equities was also evident in Europe yesterday, with the FTSE 100 dropping sharply on the back of weak UK manufacturing and lending figures.In the US, the Institute for Supply Management's manufacturing index data for August provided only temporary support for shares, despite exceeding analysts' expectations.A MarketWatch poll showed a consensus forecast of estimates predicting that the index would rise to 50.5 per cent in August, but the index actually climbed to 52.9 per cent.Elsewhere, the yen also moved higher on the pervading risk aversion seen yesterday, with the Japanese currency approaching a seven-week high against the euro.

