Corporate foreign exchange news

Dollar shakes off safe-haven shackles

Monday, 24 August 2009 13:57:27 GMT

The dollar has held steady this morning (August 24th) despite a move into riskier currencies fuelled by a rise in equities and oil.
Japan's Nikkei Index led the rise in stocks in Asia today, with the index posting a 3.3 per cent gain, the largest single-day rise seen in three and a half months.
Meanwhile, demand for oil was also supported by the publication of stronger housing data in the US which improved prospects for a recovery in demand for products such as gasoline and heating oil.
Statements from Federal Reserve chairman Ben Bernanke also encouraged a move into riskier assets after he expressed confidence in the prospects for recovery.
"People are feeling a lot better and putting their money to work back in the market," said Chris Kimber, a client adviser with Bell Potter Securities in Australia, speaking to Reuters.
However, despite this bullish sentiment, the dollar proved resilient against the safe-haven trend seen since the onset of the financial crisis, where the dollar has tended to move lower on improved prospects for recovery and rallied on gloomier data.ADNFCR-2522-ID-19325975-ADNFCR
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