Corporate foreign exchange news

Forex market news: Haven buying weighs on euro

Thursday, 05 November 2009 09:28:50 GMT

The dollar and the yen both rose against the euro this morning (November 5th) as concerns about Asian stocks promoted haven-buying activity.
In the Asian trading session, the yen advanced against all major 16 currencies tracked by Bloomberg, mimicking gains seen in the dollar after announcement from the Fed pledging to keep interest rates at near-zero levels for "an extended period".
Data due out tomorrow which is expected to show a further contraction in the US jobs market also caused foreign exchange brokers and traders to move out of high-risk currencies such as the Australian and Canadian dollars and into refuge assets.
Takashi Kudo, director of foreign-exchange sales at NTT SmartTrade, a unit of Nippon Telegraph & Telephone Corp, commented: "Uncertainty about the economic recovery is weighing on stocks, fuelling risk aversion. I expect the US jobless rate to get worse. The bias is for yen and dollar buying."
Crude oil also fell this morning as the dollar strengthened and new data showed persistent weakness in petroleum demand in the US.ADNFCR-2522-ID-19444144-ADNFCR
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