Corporate foreign exchange news
Dollar rises on positive homes, manufacturing data
Thursday, 27 August 2009 09:05:44 GMT

The dollar rose against the sterling and the euro during trading yesterday (August 26th), supported by positive home sales figures and order levels for durable goods made in the US.Meanwhile, pressure witnessed in crude futures also provided support for dollar trading, while some analysts speculated that the stronger dollar performance may have been linked to weakness in the euro.Dow Jones reported that yesterday's rally was further evidence that the dollar may be relinquishing its role as a safe-haven currency as the domestic and international economy moves into recovery mode.Since the onset of the economic crisis, the dollar has typically traded lower against its major counterparts when equities and commodities were up and moved higher amid signs that economic conditions were worsening.Citigroup analysts commented: "Both anecdotal evidence and a more systematic approach suggest that the US dollar's relationship with risk is diminishing. Instead, the traditional correlation with cyclical performance is beginning to re-emerge."

