The U.S. dollar weakened today as the concern for the U.S. economic recovery and gains of the global stocks decreased the appeal of the greenback as the safe currency.
The Stoxx Europe 600 Index rose 2.6 percent. The Standard & Poorâs 500 Index fell 5 percent in the previous week, following the 3.7 percent decline in the week before. The Dollar Index, declined last week for the fourth week, dropping to 84.427.
The previous disturbing data make the market participants to worry about the sustainability of the U.S. recovery. The U.S. gradually replaces Europe as the main reason to worry for the traders, as the weak housing market and the unfavorable employment data signals about the end to the recent fast growth of the U.S. economy. The dollar hasn’t much appeal as the safe haven amid such uncertainty.
EUR/USD traded at 1.2654 as of 16:37 GMT today after opening at 1.2538. GBP/USD traded near 1.5174 after it opened at 1.5133. USD/JPY fell to 87.40 from its opening rate of 87.75.
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