US Dollar remains frustrated by risk taking
US Dollar remains frustrated by risk taking
09-23-2009 11:22
The Greenback remains frustrated by increasing risk seeking this week, resulting in the weakest levels this year against many currencies in almost all global economic areas, due to traders seeking risks and investing in more-profitable assets. It remains unclear and difficult to estimate how long the risk appetite will continueUS Dollar
Several currencies worldwide rose or maintained their strong levels this Wednesday against the US Dollar as the Federal Reserve will probably suggest that borrowing costs in the North American nation will remain at record lows, boosting emerging currencies such as the South African Rand and South Korean Won to rise considerably against the US Dollar. The Pound Sterling recovered after losing against the Greenback as central bank’s policy makers came to terms concerning the soon-to-expire asset-purchase program. The Kiwi Dollar posted the best results against the US Dollar since its economy expanded in the previous three months.Frustrated by risk taking
Currency specialists still feel there is a large question mark over the Greenback's depreciation, even if the bearish trend persists. Jack Crooks, president and chief trading officer at Black Swan Trading, commented: “Risk seeking is likely to weaken.” The US Dollar is also impacted by low borrowing costs and it is complicated to forecast how long the present circumstances will continue to drive risk-taking in foreign-exchange markets against the US Dollar.
