RTTNews - The dollar surged higher versus the euro and held its ground versus other majors on Wednesday as US stocks slumped, fueling increased aversion to riskier, higher-yielding assets.
After coming within a hair of its 2009 low versus he euro earlier this week the dollar has shot up to an 11-day high of 1.4006.
Traders reacted to a relatively disappointing report on durable goods orders. Meanwhile, the Federal Reserve's Beige Book said that most districts see recession easing, but that economic activity remains weak.
The dollar came up just shy of hitting a fresh 5-month high versus yen. The buck rose to 95.30, erasing its losses from the previous session while challenging Monday's high mark of 95.37.
The dollar rose versus the sterling, reaching a weekly high of 1.6360. Still, on a longer term basis, the pair has been stuck in the mud, and is little changed over the past two months.
Meanwhile, the dollar saw renewed buying interest versus the scorching-hot loonie, rising to a weekly high of $1.0930 from a 10-month low of $1.0749.
With orders for transportation equipment showing a substantial decline, the Commerce Department released a report on Wednesday showing that orders for manufactured durable goods fell by much more than expected in the month of June.
The report showed that durable goods orders fell by 2.5 percent in June following a downwardly revised 1.3 percent increase in May. Economists had expected orders to fall by 0.6 percent compared to the 1.8 percent increase originally reported for the previous month.
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