Corporate foreign exchange news
Forex market news: Dollar sinks on earnings expectations
Thursday, 15 October 2009 09:06:08 GMT

The dollar fell broadly in trading yesterday (October 14th) and plumbed 14-month low this morning ahead of the latest earnings reports from Goldman Sachs.Analysts are expectant that the financial powerhouse will follow in the footsteps of JPMorgan Chase, which yesterday posted third-quarter earnings of $3.59 billion, outstripping estimates by a strong margin.Optimism abounded in Asian trading this morning, with foreign exchange brokers and traders flocking to high-yield currencies such as the Australian dollar, which touched a 14-month high against its US counterpart.Speaking to Bloomberg, head of the foreign-exchange group in Tokyo at Societe Generale SA, France's third-largest bank, said: "Good earnings and rising stocks underpin risk appetite. That will weigh on the yen as funding currency along with the US dollar."Reuters reports that the New Zealand dollar also rose against the greenback yesterday after the country posted inflation figures which raised prospects for a near-term interest rate hike.



