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Dollar weakens against the Euro

News also that the SEC has banned naked short selling of stocks sent share prices soaring restoring briefly, some confidence to the markets.

The dollar weakened against the Euro to a high of 1.4509, the dollar had previously benefited as worries over the state of the global financial system heightened risk aversion prompting US investors to repatriate funds invested overseas. The decision by global central banks to inject $180bn of emergency liquidity into the market should help boost risk appetite and therefore damp demand for the dollar.

Sterling received a boost from very strong retail sales in August released at 1.2% M/M vs. expectations of -0.5% pushing it to a high of 1.8275 against the $. It traded in a relatively tight range and overall the GDP/USD traded with a low of 1.8090 and a high of 1.8275 before closing the day at 1.8180 in the New York session.

Aussie dollar was extremely volatile reacting to market sentiment throughout the day coming under early selling pressure against the Yen and mounting stock losses. However it made significant broad based gains at close of business in the US due to recent rises in gold and a slight recovery in commodity prices.

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