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.

