Dollar Recovers on Banking Sector Concerns

After hitting several lows versus multiple currencies during the past days as risk appetite surged in equities markets, the dollar rebounded slightly towards the end of this week’s session, as concerns regarding the global financial health brought risk aversion once again in evidence.

The dollar traded this week at a one-year low versus the euro, the Aussie and the kiwi as confidence towards the world economic recovery brought investors back to higher-yielding options, damping demand for the greenback in foreign-exchange markets. This Friday, concerns regarding the British Lloyds Banking Group Plc emerged, reviving pessimism among traders that opted for safety towards the end of the session.

EUR/USD closed the week at 1.4704 after being traded at 1.4738 on Thursday.

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