FX round-up: Dollar spikes on bank concerns
The dollar made headway against most major currencies on Monday as US stocks tumbled on fresh concern about financial shares and as risk aversion resumed.Downgrades of several big name bank stocks by Dick Bove, the US Banking analyst, triggered fresh concern about the financial sector and a wave of profit taking among financial stocks. Commodities also suffered as investors locked in profit from recent gains.
The dollar index, which measures the greenback against a basket of six other currencies, rose to 76.1 from 75.5 late Friday.
The dollar recovered against the euro, after falling to new 14-month low against the euro zone currency. This followed a Chinese report that said while the dollar should remain the main currency in China's foreign exchange reserves, holdings of euros and yen should be increased. The dollar rose to 92.20 yen from 92.10 yen in late Friday. On Monday, the euro fell nearly 1% to $1.4847.
Sterling was up slightly against the dollar at $1.6318, recovering some ground from earlier weakness, but remained under pressure amid late afternoon dollar interest.
No comments:
Post a Comment