US Dollar Lower Today, But Looks to Post Annual Gain

US dollar is almost universally lower today, thanks to a small amount of optimism as the year draws to a close. However, even though the greenback is lower on the day, the currency looks to post an annual gain against the euro.

Indeed, 2011 has been a year of dollar strength as Forex traders have turned to it as a safe haven. With concerns about what’s happening in the eurozone weighing on the euro, and with uncertainty about the state of the global economy going, greenback saw solid appreciation over the past year.
Going into 2012, there is speculation that the US dollar could still retain some of its strength — depending on what happens to the euro. If solutions to the problems plaguing the eurozone aren’t found, the US dollar could see a resurgence.
For now, though, the US dollar is lower against the other major currencies. Positions are being closed out at the end of the year, and some of the drop in the greenback might be due to profit taking, as well as a measure of optimism about improvements seen to the economy.
At 16:41 GMT EUR/USD is higher at 1.2991, up slightly from the open at 1.2962. GBP/USD is higher at 1.5560, up from the open at 1.5416. USD/JPY is lower at 76.9280, down from the open at 77.6390.

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