Dollar Looks Down as Commodities Strive Up

The US dollar weakened today against the euro as rally of stocks and commodities make investors less enamored of safer assets. The Japanese yen also suffered from falling demand for safety, allowing the greenback to hold its ground against this currency.

The Standard & Poor’s 500 Index gained 0.5 percent. The Thomson Reuters/Jefferies CRB Index of raw materials went up 0.1 percent to 340.01. June contract for crude oil delivery added 0.7 percent to $98.85 per barrel in New York, following the slump by 3 percent to $95.25. The JPMorgan Chase & Co. volatility index reached 11.97 today, following the jump to 12.09 on May 5, the highest level since March 17.

Some caution remains at markets as the story with Greece and other indebted nations of the European Union hasn’t ended. The officials say that the restructuring of the Greek debt isn’t necessary, but many traders simply don’t believe in such statements. The recent slump of precious metals also made investors wary of commodities, giving strength to the US currency.

EUR/USD rose from 1.4191 to 1.4239 as of 21:54 GMT today after falling as low as 1.4122. GBP/USD went from 1.6343 to 1.6286. USD/JPY traded at 80.98 after opening at 81.05.

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