The dollar experienced some changes today as it is gaining against major currencies though the American markets are closed due to President Day Holiday. The market however is dominated by unwinding of carry trades as investors sell high yielding currencies and buy low- yielding currencies such as the yen to avoid risky investment.
Elsewhere, the euro and the pound slipped lower against the US dollar after unwinding of carry trades took over the market. The Euro was worth $1.4641 in midmorning European trading, drifting then lower against the US dollar pushing the pair to record a low of 1.4610 after recording a high of 1.4690.
Meanwhile, a weaker sterling is in turn being sketched as the pound slips against the US dollar today. Furthermore, the property in UK is still diminishing while investors are on a wait-and-see-approach for further clues on the health of the UK economy. The pair is now towards the downside recording at this hour a low of 1.9474 after recording a high of 1.9637.
Growing risk appetite and lower interest rate in Japan may encourage investors to borrow the low yielding Yen and invest in higher-yielding assets elsewhere. The dollar therefore rebounded against the yen pushing the pair to record a high of 108.31 and a low of 107.74. However it looks like the dollar is fluctuating towards
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