The dollar proved itself unable to resist a new wave of risk appetite this week that set the greenback to the lowest levels in 2009 versus several currencies in virtually all economic regions in the world, as traders are confident to take risks and purchase
Multiple currencies around the world either gained or continued at high levels today versus the greenback as the Federal Reserve is likely to indicate that borrowing costs in the world’s wealthiest nation will remain at record lows, providing support for emergent market currencies like the South Korean won and the South African rand to gain significantly versus the greenback. The British pound reverted a negative trend versus the dollar as Bank of England officials reached a consensus regarding the soon to be defunct
Even if the dollar remains bearish, currency specialists remain uncertain regarding dollar’s devaluation. “The risk appetite is due for a breather” according to JR Crooks, director of research at Black Swan Trading. The low borrowing costs also are affecting the greenback, but it is hard to determine how long the current scenario will fuel risk apettite in currencies versus the greenback.
EUR/USD traded in neutrality from yesterday at 1.4783 as of 12:57 GMT today. NZD/USD traded at 0.7242 from 0.7211.
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