Risk Aversion Pushes Dollar Higher Against Euro

29 Dec

NEW YORK – Currency traders sought refuge in the dollar on Tuesday as weak consumer data and a US bond auction spooked investors.

The euro fell to 1.3116 dollars at 2200 GMT from 1.3161 on Monday.

“There has not been any strong trigger to the pull back of the euro except the fact that equity market pulled back especially with that weaker-than-expected consumer confidence in the US,” said Vassili Serebriakov of Wells Fargo.

“It seems that there is little interest in buying the euro, that is why the euro is probably suffering from this pull back in equities more than other currencies.”

US stock markets had been rattled earlier in the day by news that American consumer confidence had unexpectedly slipped in December.

And a weak auction of five-year US Treasury bonds further soured sentiment.

The dollar fell to 82.43 yen versus 82.78 yen on Monday, while the pound fell to 1.5375 dollars from 1.5417.

The dollar fell to 0.9519 Swiss francs from 0.9599.

– AFP /ls

Channel News Asia

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