Dollar climbs as stocks gain

Posted on Jan 4, 2011 in AllEconomic News
The U.S. dollar rose against major currencies in late New York trading on Monday as stocks rose on optimistic prospect of economic growth in 2011.

All of the three major stock indexes in U.S. stock market gained about 1 percent as investors were confident that the U.S. economy would go well in 2011.

The euro rallied above 1.335 against the dollar in late trading session as the euro zone welcomed Estonia as its 17th member on Jan. 1.

Declining U.S. bond yields weighed on the dollar. Benchmark 10- year yields hit a high of 3.4395 percent in early trading, but slipped to 3.3362 percent by midday.

However, many analysts still saw continued strength in the dollar and further downside for the euro, as Spain and Italy, which were still struggling in the debt crisis, trying to find buyers of 400-billion euros in debt as maturing bonds fell due.

In late Monday trading, the dollar bought 81.65 Japanese yen, comparing with 81.21 late Friday, and the euro fell to 1.3364 dollars from 1.3367.

The British pound also fell to 1.5491 dollars from 1.5590. The dollar fell from 0.9338 to 0.9330 against Swiss francs, but rose to 1.0084 Canadian dollars from 1.0043.

Dollar climbs as stocks gain – People’s Daily Online.