Currency Alerts
11/3/2009 5:03 AM ET
(RTTNews) -
During early deals on Tuesday, the US dollar and the Japanese yen edged higher against their major counterparts as a fall in most Asian and European stock prices boosted demand for currencies perceived as safe havens.
The dollar and the yen are viewed as safe-haven currencies and both currencies gain, when investors turn risk averse and fall when risk appetite improves.
World stock markets were lower today despite improvement in U.S. manufacturing as doubts lingered about the durability of a rebound in the world's largest economy.
Asian stocks, which tumbled the day before on a fall in U.S. consumer spending, got little relief from news that American manufacturing grew at its fastest pace last month since April 2006. European markets fell in early trade.
Hong Kong's Hang Seng led Asia's losses, falling 380.13, or 1.8 percent, to 21,240.06 while South Korea's Kospi was down 0.6 percent at 1,549.92. Japan's market was closed for a holiday.
Elsewhere, Australia's S&P/ASX 200 closed down 0.2 percent and Taiwan's market lost 0.2 percent. China's Shanghai index bucked the trend, gaining 1.2 percent to 3,114.23 with sentiment still boosted by a weekend report manufacturing expanded for an eighth straight month in October.
As trading got under way in Europe, Britain's FTSE 100 was off 1.3 percent, Germany's DAX lost 1.4 percent and France's CAC 40 fell 1.5 percent. Stock futures pointed to losses Tuesday on Wall Street. Dow futures were down 49, or 0.5 percent, at 9,686 and S&P Futures dropped 5.9, or 0.6 percent, to 1,033.20.
Against the European currency, the US dollar edged higher during early deals on Tuesday. At 4:30 am ET, the dollar reached a high of 1.4618 against the euro, compared to 1.4777 hit late New York Monday. The next upside target level for the US currency is seen around 1.461.
The US currency that closed Monday's North American session at 1.6410 against the British pound climbed to a 6-day high of 1.6294 at 4:30 am ET Tuesday. The pound-dollar pair is currently trading at 1.6308 with 1.611 seen as the next target level.
Construction activity in the UK continued to fall in October, survey data released by Markit Economics showed today.
The CIPS/Markit construction purchasing managers' index or PMI fell to 46.2 in October from 46.7 recorded in September. Economists had expected a reading of 47.2. A PMI reading below 50 suggests contraction in the sector.
Against the Swiss franc, the greenback traded higher during today's early deals. At 4:30 am ET, the dollar-franc pair hit a high of 1.0275, compared to Monday's closing value of 1.0218. If the pair gains further, 1.035 is seen as the next target level for the pair.
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