Currency Alerts
11/26/2009 11:14 PM ET
(RTTNews) -
Friday during Asian deals, the US dollar climbed against the European majors as concerns about the global economy prompted investors to seek the safety of the world's most liquid currency.
The dollar jumped to a new multi-week high against the pound and multi-day highs against the euro and the franc.
Stock markets across the Asia-pacific weakened today on Dubai's debt issues.
It was reported yesterday that economic stormclouds are threatening to cripple the country of Dubai as the country could default on billions of dollars of debt. State-run holding company Dubai World currently has US$59 billion in liabilities, a staggering 73.75 per cent of Dubai's national debt of US$80 billion. Standard & Poor's has lowered its debt ratings on several state-owned Dubai companies.
The US dollar climbed against European majors yesterday despite being a holiday. U.S. markets were closed for Thanksgiving.
The dollar strengthened in early dealing versus the euro and climbed to a 3-day high of 1.4916 by about 9:30 pm ET. If the dollar rises further, 1.480 is seen as the next likely target level. The euro-dollar pair closed Thursday's deals at 1.5021.
In the European session, French and the Euro-zone consumer confidence reports and the Swiss KOF leading indicator are expected.
The dollar rallied to a 24-day high of 1.6382 against the pound during Friday's early trading, compared to 1.6535 hit late Thursday in New York. On the upside, the next likely target for the US dollar is seen around the 1.626 level.
Against the currency of Switzerland, the US dollar spiked up during Friday's early trading. The dollar-franc pair edged up to a 3-day high of 1.0108, compared to 1.0030 hit late Thursday in New York. If the dollar moves up further, 1.02 is seen as the next upside target level.
Yesterday, there was suspicion about the intervention by the Swiss National Bank in the foreign exchanges to sell the Swiss franc, which had surged to its strongest level against the dollar since April last year. But the bank declined to comment on the issue.
At the same time, the dollar weakened versus the yen due to across the board rallying of the latter on the back of weak equities. The demand for the yen increased as the stock markets across the Asia-pacific fell sharply today morning taking cues from the Wall Street.
But the dollar gained some ground after hitting a new multi-year low of 84.84 against the yen by 6:40 pm ET. As of now, the pair is trading at 86.07, compared to yesterday's closing value of 86.60. If the dollar climbs, it may target the 47 level.
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