Risk appetite improves on U.S. stock gains, upbeat data from China and Europe.
The dollar fell to its lowest levels so far this year against both a basket of currencies and the euro Monday, as optimism that the global economy is on the road to recovery boosted riskier assets.
Commodity-related currencies including the Australian and New Zealand dollars, which are considered to be higher risk, hit eight-month highs against their U.S. counterpart as oil prices jumped and U.S. stocks rose.
The dollar pared some losses after a key measure of U.S. inflation rose more than expected and data showed U.S. manufacturing contracted in May, though at a slower rate, but that failed to derail the day’s overall trend.
Dollar Falls
“Generally, this is still a case of better-than-expected data not necessarily good for the U.S. dollar,” said Shaun Osborne, chief currency strategist at TD Securities in Toronto. “We expect no rebound in sight for the dollar just yet.”
In late morning New York trade, the dollar index was down 0.2% at 79.077, after hitting its lowest level since mid-December at 78.586 earlier in the global session.
The euro gained 0.2% on the day to $1.4179, having rallied as high as around $1.4246, its strongest since late December.
Among perceived higher risk currencies, sterling rose to a seven-month high against the dollar at $1.6436, while the Australian and New Zealand dollars hit eight-month highs of $0.8137 and $0.6520 respectively.
“This is a market that is in the process of selling the dollar against everything, buying commodities, and that should continue today,” said Brian Dolan, chief currency strategist at Forex.com in Bedminster, N.J. “The move has taken on something of a self-fulfilling quality to it now.”
The dollar did manage gains against the yen, climbing 1.4% to 96.65 yen. The yen is considered the least risky of all currencies and falls against all currencies as risk tolerance rises.
Adding to optimism that the global economy may be over the worst of the recession, the final euro zone PMI manufacturing index climbed to a seven-month high of 40.7 in May, up from the provisional estimate of 40.5.
The U.K. manufacturing PMI was also stronger than expected, showing the slowest contraction in the sector in a year.
Earlier, the Chinese PMI came in at 53.1 in May, and while it fell from 53.5 in April, it was the third month in a row that the reading has been above the 50 level that separates expansion from contraction.
General Motors Corp (GM, Fortune 500). filed for bankruptcy as expected, removing some uncertainty about the ailing U.S. auto industry. This helped risk appetite and weighed on the dollar.
Tags: China, Dollar Falls, Europe, Global Economy, USA
Great website…
[...]we like to honor many other internet sites on the web, even if they aren’t linked to us, by linking to them. Under are some webpages worth checking out[...]……
Check this out…
[...] that is the end of this article. Here you’ll find some sites that we think you’ll appreciate, just click the links over[...]……
Lunettes Tag Heuer …
[...]Writing about a topic like this is pretty tough. It’s good to understand some individuals nevertheless care about this[...]…
Exciting…
[...]If perhaps things were as easy as you said it ought to be. However, I enjoy it – the write-up and everything[...]…
Check this out…
[...] that is the end of this article. Here you’ll find some sites that we think you’ll appreciate, just click the links over[...]……
tilphoto…
My sister today told me that i should check this out….
The Big Bang Theory…
Thanks for your publication. I would also love to say that the very first thing you will need to perform is verify if you really need repairing credit. To do that you simply must get your hands on a duplicate of your credit report. That should really n…
Sources…
[...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources that we use[...]……
Websites we think you should visit…
[...]although websites we backlink to below are considerably not related to ours, we feel they are actually worth a go through, so have a look[...]……
Blogs ou should be reading…
[...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]……
Sites we Like……
[...] Every once in a while we choose blogs that we read. Listed below are the latest sites that we choose [...]……
You should check this out…
[...] Wonderful story, reckoned we could combine a few unrelated data, nevertheless really worth taking a look, whoa did one learn about Mid East has got more problerms as well [...]……
Websites you should visit…
please visit the sites we follow, including this one, as it represents our picks from the web…
Sources…
[...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources for villa rentals that we know of [...]……
Links…
[...]Sites of interest we have a link to[...]……
Superb website…
[...]always a big fan of linking to bloggers that I love but don’t get a lot of link love from[...]……
You should check this out…
[...] Wonderful story, reckoned we could combine a few unrelated data, nevertheless really worth taking a look, whoa did one learn about Mid East has got more problerms as well [...]……
Yahoo results…
While browsing Yahoo I found this page in the results and I didn’t think it fit…
Superb website…
[...]always a big fan of linking to bloggers that I love but don’t get a lot of link love from[...]……
Awesome website…
[...]the time to read or visit the content or sites we have linked to below the[...]……
News info…
I was reading the news and I saw this really interesting info…
Great information…
This is often impressive. Two of us looked at this disease material and we are stupefied. We are attracted to this sort of factors. Every appreciate each of the guide, and number doing with this. Please keep adding information to. They’re amazingly su…
[...]Browsing the net[...]…
[...]SLately I have been browsing a lot more in my spare time[...]…
Check this out…
[...] that is the end of this article. Here you’ll find some sites that we think you’ll appreciate, just click the links over[...]……
Yahoo results…
While searching Yahoo I found this page in the results and I didn’t think it fit…
Visitor recommendations…
[...]one of our visitors recently recommended the following website[...]……
SEO USA…
Good job, man. i liked this site…
dating site reviews…
I am not positive the place you are getting your info, but great topic. I must spend some time learning more or figuring out more. Thanks for excellent info I used to be looking for this information for my mission….
kjoler…
This is really cool to see someone posted almost the same thing that i thought about….
News info…
I was reading the news and I saw this really interesting topic…
Get A Brand New Roof…
[...]This is truly cool. I will check your web page inside the long term.[...]…
Informative and precise…
Its hard to find informative and precise info but here I noted…
Looking around…
While I was surfing today I saw a excellent article concerning…
Dreary Day…
It was a dreary day here yesterday, so I just took to piddeling around on the internet and found…
Online Article……
[...]The information mentioned in the article are some of the best available [...]……
Read was interesting, stay in touch……
[...]please visit the sites we follow, including this one, as it represents our picks from the web[...]……
Sites we Like……
[...] Every once in a while we choose blogs that we read. Listed below are the latest sites that we choose [...]……
Yahoo results…
While browsing Yahoo I discovered this page in the results and I didn’t think it fit…
btjunkie…
[...]btjunkie one of our visitors recently recommended the following awesome websites[...]……
isohunt download…
[...]isohunt Sites of interest we have a link to[...]……
Great website…
[...]we like to honor many other internet sites on the web, even if they aren’t linked to us, by linking to them. Under are some webpages worth checking out[...]……
Informative and precise…
Its difficult to find informative and precise info but here I noted…
Read was interesting, stay in touch……
[...]please visit the sites we follow, including this one, as it represents our picks from the web[...]……
Read was interesting, stay in touch……
[...]please visit the sites we follow, including this one, as it represents our picks from the web[...]……
Sites we Like……
[...] Every once in a while we choose blogs that we read. Listed below are the latest sites that we choose [...]……
Just Browsing…
While I was browsing yesterday I saw a great post concerning…
[...]In order to ensure that the site that you are applying for funds is legit it is imperative that you do some research before giving the site any personal information[...]…
If you plan to take out a small, quick loan that you start to repay on your next payday, then you will need the reliability of a professional company…
Read was interesting, stay in touch……
[...]please visit the sites we follow, including this one, as it represents our picks from the web[...]……
[...]Therefore, in order to make the entire lending process go smoothly it is imperative that you do not lie when it comes to filling out your electronic application online[...]…
Some lenders make cash advances available from two figure amounts of money…
[...]Once you apply for long term payday loans you will receive notification of approval almost straight away and begin the short task of establishing your repayment schedule with you lender[...]…
If you fail to repay the loan you will be charged a penalty fee which could really send you into a loan repayment cycle that only worsens with each passing day…