Greenback rises on declining equities

09-11-2009 12:14

The US Dollar rose this Wednesday as speculations refreshed investors that the present gains in stock markets may not correspond with the actual potential of global economic and corporate expansion. The Greenback’s rebound came after yesterday’s plunge on the back of traders seeking high-yielding equities worldwide.

False sentiment

After reaching the weakest level against the Euro last Tuesday, the Greenback rose slightly due to a report demonstrating that consumer prices in the Eurozone’s largest economy, Germany, dropped in August from last year, making traders clear that the sentiment concerning the Eurozone economy does not reflect the current situation. High-return currencies associated with commodity goods, such as the Aussie and the South African Rand, fell as the price of metals dropped globally.
Swedish long term debt ratings have been decreased by Moody’s Investors Service, on which the US Dollar also rose against the Swedish Krona,

Greenback rises

Today’s rebound of the Greenback was led by two causes. Markets may show a corrective movement due to investors benefiting from strongly rising high-return assets yesterday, while the present economic sentiment lost some of its optimism in comparison with a few months earlier. Furthermore, a swiftly recovering global economy was a future consensus among investors, which not correspond with the actual situation since a number of economic zones globally are still struggling with several problems.