Dollar Tumbles on Increased Risk Appetite

The U.S. dollar lost versus most of the main traded currencies in foreign-exchange markets with a stronger risk appetite today as traders expect the economic recovery to accelerate, decreasing demand for refuge currencies after the dollar gained during most of the past week’s sessions.

Even if U.S. data published today did not frustrated traders, a renewed appetite for riskier assets brought traders to purchase higher-yielding currencies while demand for commodities like the crude oil emerged after falling for several consecutive days. The Swedish krona was one of the biggest winners versus the greenback today as a report showed that the Nordic nation’s manufacturing grew at the fastest pace in 3 years, beating forecasts and attracting investors to Sweden. The Canadian dollar reverted a losing trend versus the greenback after the oil, Canada’s main export, had an increase on its demand today.

The dollar passed by a correction today, after several days gaining versus most of the high-yielding and emerging markets currencies, but several reasons still support the preference for the greenback among traders globally, as financial systems throughout the world are facing a recycling process.

USD/CAD fell to 1.0632 as of 20:02 GMT from an opening rate of 1.0703 yesterday. AUD/USD rose to 0.8908 from 0.8815.

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