The US dollar strengthened vs. most major currencies as a fall in global equities and commodities increased safe-haven flows. There is no economic data out of the US today.

The euro fell against the dollar on increased risk aversion. Producer prices in Germany, Europe's largest economy, which fell 7.6% in October from the previous year.

Sterling fell against the dollar as a fall in global equities and commodities pushed investors to sell higher-yielding assets.

The Japanese yen fell against the dollar, but was trading higher vs. other major currencies as the Bank of Japan left interest rates unchanged at 0.1%. The Bank of Japan said that growth is picking up and that they would maintain low borrowing costs, but government officials were still worried about the threat of deflation. The new administration, which took office in September, signaled that it wanted the central bank to step up its purchases of government bonds to inject more cash into the banking system.

The Canadian dollar fell, hurt by weaker equity and commodity prices, including gold and oil. Gold fell from $1,140, while oil prices dropped below $77 a barrel. As investor's appetite for risk wane, the greenback strengthened across the board.

The Australian and New Zealand dollars continued to lose steam vs. the US dollar as commodity prices weaken and investors partake in the greenback safe haven flows. The Aussie has been an appealing currency for many investors, as it has been the best performing currency so far this year.

 

Indicative rates:

EUR/USD

1.4861

USD/JPY

88.94

GBP/USD

1.6518

USD/CAD

1.0709

USD/MXN

13.0775

USD/CHF

1.0183

AUD/USD

0.9145

NZD/USD

0.7246

10-Year Treasury Note Yield: 3.3434%

Dow Jones Industrial Average: 10,290.50 -41.94