US dollar rises against major currencies
US dollar rose to a 1 year peak against major currencies, with investors hanging on to the currency in the midst of increasing fear of global slowdown.
Rush in risk aversion also assisted low yielding yen, as it’s pushed down new Zealand dollar, Australian dollar and euro to its lowest in two years. Times when risk appetite and global growth were increasing, yen was used to buy high yielding currencies in carry trade by investors.
According to analysts and experts, US investors were being driven to clear up or settle advantage in growing markets by vague global financial view. Senior currency strategist at Brown Brothers Harriman in New York, Win Thin, believes that the rise in US currency is a nothing new and is a continuation of the latest trend, with people trusting US market. He also added that with ability if US dollar to sustain global slowdown, someday, the trend will continue with money administrators getting back in United States.
USD index increased 80.375 DXY on ICE Futures Exchange that measures value of dollar against other six major currencies (the increase is the highest since last year). By the afternoon, trading was noted at a 0.2 percent of high with 80.175.
After trading at $1.3945, euro went down to $1.3882