The dollar gained today versus the euro and specially higher yielding currencies as speculations that Greece may struggle to pay its debts surged, raising demand for safety and providing support for the greenback and the yen to be the best performers in currency markets this Thursday.
The U.S. gained versus most of 16 main traded currencies after Greece, an Eurozone member country, received the second credit downgrade by Standard and Poor’s this year, decreasing attractiveness for riskier assets worldwide and forcing traders towards safety, favoring the dollar and the yen mainly. The pound declined significantly versus the U.S. dollar bottoming at a
The situation in several EU members is still far from optimist, and that could be an obstacle for the euro to remain strong versus the greenback according to J.R. Crooks, Director of Research at Black Swan Capital:
There’s obvious concern that more problems could pop up and hamper recovery in the Eurozone, if not threaten the euro’s semblance altogether
The dollar may advance specially versus the euro under this circumstances on the short term, and rates below $1.40 aren’t unrealistic, according to analysts.
EUR/USD traded at 1.4317 as of 14:30 GMT from a previous rate of 1.4535. GBP/USD traded at 1.6136 from 1.6373.
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