The greenback dropped this Thursday as increasing speculations of a world economic recovery increased risk appetite among traders, inducing the purchase of high-yield currencies.
The New Zealand and the Australian dollar led the list of gains today as an improved world economic scenario is constantly increasing traders confidence to take riskier positions in equities and currencies markets, making the dollar to lose attractiveness. The U. S. dollar had more significant losses against currencies in Oceania as the New Zealands central bank left its benchmark interest rates unchanged, while in Australia, jobs had a less-than-expected drop, creating perfect conditions for both the Aussie and the kiwi to rally sharply against the greenback. The pound gained against the dollar as Bank of England policy makers stated that the United Kingdom recession might be ending soon.
Analysts affirm that in a today without relevant data release or financial institutions statements, the market tends to follow the movement of commodity and stock trading, and this scenario is lately often not favorable to the dollar. It is also a common opinion among economists that multiple factors still weigh on the dollar, like the questioning on whether it will continue as the main global reserve currency, creating a bearish tone around the North American currency.
AUD/USD traded at 0.8149 as of 10.48 GMT rising from yesterdays rate of 0.8055. NZD/USD climbed to 0.6428 from 0.6325.
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