Friday, May 13, 2011

Dollar Goes Higher as Stocks Falls Down on European Debt

Dollar Goes Higher as Stocks Falls Down on European Debt - The US dollar gained today against all most-traded currencies, except the yen, as equities declined because of the persisting concern about the European credit crisis.

Die Welt claimed that Germany insisted on restructuring of Greece’s debt. Spokesman Christoph Steegmans said in an interview that the German government has “no knowledge” about about the plans for restructuring of the Greek debt.

The Standard & Poor’s 500 Index of stocks slipped 0.8 percent. The Thomson Reuters/Jefferies CRB Index of raw materials was little changed, following the advance by 0.9 percent and the decline by 0.8 percent.

The US economy gave reason for optimism as today’s macroeconomic data confirmed the economic recovery in the North American country. The inflation grew 0.4 percent in April, following the 0.5 percent advance in March. The Michigan University wrote in its preliminary estimate that the consumer sentiment index rose from 69.8 to 72.4 this month.

EUR/USD fell from 1.4244 to 1.4116 today as of 21:14 GMT, following the advance to 1.4340. USD/JPY slipped from 80.93 to 80.33 before trading at 80.77. USD/CHF went up from 0.8838 to 0.8925.


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