The US dollar traded with much stability versus the Euro in overnight trading session on Wednesday as US Treasury yields increased in the auction on Wednesday. The yield on 10-year, long-term note surged by 16 basis points.
Negative points still created uncertainty among the investor due to rising fiscal problems in United States and euro-zone’s debt situation. These factors kept the Swiss Franc and Japanese Yen on their respective highs versus the greenback.
The dollar index DXY which measures the US dollar’s performance versus its six major rivals was slightly down o 80.276 as compared to 79.596 on Tuesday.
Currency Strategist Neil Mellor from New York Mellon commented, “Cheaper U.S. Treasury prices make them more attractive but only to a point, and there could come a point when investors don’t want to buy them anymore.”
Analysts are of the opinion that main of cause of US dollar decline versus the Yen is that Japanese exporters have been selling the US dollar perceiving the greenback to be weakening.
The Euro remained steadier versus the US dollar to 1.3123 after hitting $1.3275 on Tuesday. The Euro moved slightly up from the record low 1.2440 to 1.2489 as compared to Swiss Franc. The Swiss Franc made its mark on Tuesday after touching its record low of 0.9437 versus the US dollar however toady it recovered to $0.9517 on Wednesday.
Currency Strategist Niels Chirstensen from Nordea in Copenhagen commented, “The Swiss franc is well supported by fundamentals, risk aversion and by people diversifying out of Euros.”
The US dollar declined 0.5 percent to 82.08 versus the Japanese Yen as compared to 81.81 on Tuesday.
In other currencies the US dollar declined 0.4 percent versus the Australian dollar to 1.0136 as compared to 1.0153 on Tuesday. Investor seems to be selling the Euro from portfolio and taking fresh position in Australian dollar which is also being considered as safe haven.
The US dollar also declined 0.3 percent versus the Canadian dollar to 0.9982, many traders are expecting that the pair could hit its lowest in 2.5 years which was reached in April at CS0.9931
Daily forex trading news written by Rehan from DailyForexTrade.com
