Forex trends: dollar dips to 1-year low versus euro on stock rise

image Thursday during early European deals, the US currency hit its lowest level in almost 1-year against the euro as the world stocks surged up on upbeat US economic reports, which raised hopes that the pace of the global economic recovery was accelerating and kept up pressure on the dollar as investors sought out riskier assets and higher-yielding currencies.

Thus greenback slid to 1.4768 against the euro, marking the lowest point for the dollar since September 26, 2008. If the dollar drops further, it may target the 1.50 level. At yesterday’s close, the EUR/USD rally was quoted as much as 1.4708.

The dollar, that closed yesterday’s trading at 1.0322 against the Swiss franc tumbled to near a 14-month low of 1.0288 in early deals on Thursday. The next downside target level for the USD/CHF pair is seen at 1.020.

In early trading on Thursday, the dollar reached a 2-day low of 1.6557 against the pound. That was down 1% from a 1-week high of 1.6406 hit on September 15. If the dollar slides further, 1.666 level is seen as the next target.

The dollar that strengthened against the yen in Asian deals on Thursday pared gains during early European trading. Currently, the USD/JPY pair is worth 90.60, slipped from an Asian session high of 91.24. On the downside, 90.1 is seen as the next target level for the U.S. currency.

The dollar tumbled to a 13-month low of 0.8778 against the Aussie and 0.7162 against the NZ currency. If the greenback falls further, it may likely target 0.90 against the aussie and 0.722 against the kiwi. The AUD/USD and the NZD/USD pairs were worth 0.8740 and 0.7144, respectively at yesterday’s close.

The buck, which closed yesterday’s trading at 1.0672 against the Canadian dollar slipped to an 11 1/2 -month low of 1.0608 in today’s early deals. The next downside target level for the USD/CAD pair is seen at 1.050.


Comments are closed.