Date: Thursday 03 Jun 2010
The dollar rose against the euro and the yen on Wednesday with the Japanese currency particularly hurt by Prime Minister Yukio Hatoyama’s resignation. Fears about Europe’s banking sector, fresh tensions in the Middle East and recent figures showing a potential slow down in China continued to plague sentiment.
The greenback added 0.03% against the euro at $1.225 after the euro slumped to a four-year low against the dollar at around $1.2110 on Tuesday. The dollar gained 0.1% versus the yen at 92.229 yen, trimming earlier gains of 1.3% against the Japanese currency.
Risk aversion dominated the session, while the yen’s safe haven status was damaged by fears about political stability. Hatoyama's decision to step down comes ahead of impending elections for the upper house in Japan.
The dollar was little changed against the pound at $1.465. Sterling did enjoy earlier gains after Prudential announced that it was withdrawing from a $35.5bn deal to buy AIG’s AIA business.
Upbeat data on UK mortgage approvals and the construction sector also drove an earlier advance for the pound.
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