US Dollar Strengthens as European Problems Continue

Earlier, the US dollar fell back a little bit on the Forex market. However, the greenback is once again higher against its European counterparts, gaining as uncertainty over Greece — and other countries in the eurozone — continues.

US dollar is gaining against the euro and the Great Britain pound today, heading higher as risk aversion prevents Forex traders from preferring high beta currencies. European currencies are lower as continued concerns about a Greek exit from the eurozone dominate the markets. Many are hoping for the issue of eurobonds to help alleviate the situation, but even that might not help. And a Greek exit could trigger more exits, especially by other debt-burdened countries like Spain, Italy and Portugal.
Greenback remains popular, even though there are concerns about the fiscal situation in the United States. US debt continues to grow, and many wonder whether there is a problem brewing. However, with things so dramatic in Europe, the problems in the United States are being somewhat ignored, and the US dollar is still being sought as a safe haven, along with the recently downgraded Japanese yen.
At 13:29 GMT, EUR/USD is down to 1.2530 from the open at 1.2533, and off the high of 1.2605. GBP/USD is lower at 1.5667, just down from the open at 1.5668. USD/JPY is lower at 79.5720, down from the open at 79.6110.

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