Dollar take another hit after G7 confirms trader doubts on Dollar Viability

Tuesday, October 6, 2009


The Dollar began this week as it ended last, on a down note after a weekend meeting of Finance Ministers and Secretaries from the Seven (G7) wealthiest nations highlighted the street’s view that the world’s financial policy makers are also foresee a gradually weakening Dollar. T

he meeting was seen as tense as conflicting views between China and the US continued to dominate the headlines. The Dollar was also hurt by a bounce in US and global stocks, which rose for the first time in four sessions and further reduced the need for a safe-haven currency.

At 11:50PM GMT, the US Dollar was down .2% to the Euro to 1.4651, down .04% to the Japanese Yen to 89.53 down .03% against the British Pound Sterling to 1.5938, down .63% to the New Zealand Dollar to .7305 and down .41% against the Canadian Dollar to 1.5681.


The Australian Dollar rose fast across the board, after two prominent Aussie journalists speculated that Australia's Central Bank could raise their core interest rates to 3¼% from a record low 3% this Tuesday's, as the Reserve Bank of Australia meets.

Still, many in the Forex market expect that the RBA will hold off this month and make the rate hike in November. Nonetheless, traders felt positive and boosted the Aussie.

At 12:00PM GMT, the Australian Dollar was up 1.1% to the US Dollar to .8777, up .3% to the Euro to 1.6687, up .45% to the Canadian Dollar to .9395, and up .06% to the New Zealand Dollar to 1.2009.


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