Dollar Rises From Record Low

After being traded at the lowest level in 15 months yesterday, the greenback rebounded mainly versus higher-yielding options, as traders indicated that the U.S. currency devaluation could be too high and not compatible with domestic and global economic fundamentals, giving a breather to the greenback.

The dollar managed to pare some of its losses today as market sentiment shifted from yesterday’s strong bullish pattern, as well as some major rivals for the greenback had some domestic issues that influenced their performance this Tuesday in trading markets. The pound witnessed a significant fall that was later partially corrected versus the greenback as Fitch Ratings division of the financial conglomerate affirmed that the monetary health of Great Britain is far from being optimal and the country could eventually experience a downgrade on its rates, which could cause a very negative trend for the U.K.’s currency. The Brazilian real lost versus the dollar and all 16 main traded currencies as concerns surged that the government will extend taxes to foreign investors to spot the national currency to climb further.

Analysts consider today’s rebound for the U.S. currency as a normal corrective movement, and it would not necessarily main that the dollar will not fall further for the next days, when it could actually, touch a new record low for the current year.

EUR/USD traded at 1.4955 as of 16:24 GMT from a previous rate of 1.5021 yesterday. GBP/USD traded at 1.6692 from 1.6843 yesterday.

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *