Dollar dips as upbeat earnings spur optimism

Posted on Apr 21, 2011 in AllEconomic News
The U.S. dollar fell against major currencies in late New York trading on Wednesday as corporate earnings of first quarter encouraged investors to leave safe-haven dollar.

Information technology companies’ solid first quarter earnings boosted the markets. The stock markets surged on Wednesday’s trading session.

Dollar, which is regarded as safe-haven investment, was dumped by investors as equity markets were more attractive to them.

Meanwhile, Spain received strong demand for its auction of 10 and 13-year bonds, helped to lift the euro.

Although the minutes of the Bank of England’s April 6-7 policy meeting showed no clear signal of interest rate hike decision in their next month’s policy meeting, the British pound rallied to above 1.64 against the greenback in late trading session.

In late Wednesday trading, the dollar bought 82.37 yen, unchanged from late Tuesday, and the euro rose to 1.4514 dollars from 1.4340.

The British pound also rose to 1.6407 dollars from 1.6317. The dollar fell from 0.8993 to 0.8890 against Swiss francs, and also fell to 0.9546 Canadian dollars from 0.9569.

via Dollar dips as upbeat earnings spur optimism – People’s Daily Online.