Dollar sinks to 2009 low against euro
June 1, 2009
The dollar tumbled Friday to its lowest level against the euro this year with the US currency losing its appeal as a safe haven amid increasing signs of economic recovery, traders said. At 2100 GMT, the European single currency was fetching 1.4153 dollars, compared with 1.3943 dollars in New York late Thursday. The euro rose as high as 1.4168 dollars, its highest since December 30. Against the Japanese currency, the dollar fell to 95.29 yen from 96.77 yen late Thursday.
Market action came after data showed the US economy contracted less than an earlier estimate, and other signs the global economy may be on the mend.
A report in Japan showed industrial output increased 5.2 percent, marking the largest increase since 1953, while India posted better-than-expected 5.8 percent quarterly economic growth.
“Economic reports from India and Japan signal the worst of the global economic recession may be ending,” said Al Goldman at Wachovia Securities.
“The breakdown in the dollar was not triggered by a single of piece of data or news but instead by a combination of pressures reaching their tipping point,” said Kathy Lien, analyst with Global Forex Trading.
“The tide is turning and we are beginning to see more signs of stability in the US and global economy. This has given investors the
confidence to move out of the safety of US dollars into higher-yielding, riskier currencies.”
Source: The Bangladesh Today
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