Forex - US dollar mixed in morning Sydney trade; some safe haven buying seen |
|
|
|
Published
:
Wed, 15 Aug 2007 03:14
|
SYDNEY (Thomson Financial) - The US dollar was mixed against major currencies in morning Sydney trade Wednesday with the greenback getting some support from safe haven buyers moving to cut risk in the wake of fallout from the US subprime loans crisis.At 11.35 am (0135 GMT) here, the dollar was at 117.43 yen down from 117.83 in late New York trade Tuesday, while the euro fell to 1.3523 US dollars from 1.3543 dollars previously.A shift into US Treasuries by investors anxious to cut their risk exposure to other more volatile instruments has been underpinning the recent strength in the greenback.As a result of the reduced risk appetite many investors have been unwinding carry trades, putting high yielding currencies under pressure, strategists at NAB Capital Markets said.'In the absence of a circuit breaker, investor risk-appetite is likely to remain poor for some time to come,' they said.The strategists said the large long speculative positions being unwound are in Australian and New Zealand dollars, sterling and the euro. Conversely, the squaring of existing short positions in the yen and US dollar is supporting these currencies.The strategists said softer economic data in the UK and the Eurozone has also reduced chances of further interest rate rises, adding to downward pressure on the sterling and the euro.GFT senior financial analyst Ian Copsey said the dollar has found its lows against the euro, sterling and Australian dollar and is set to track back up over the balance of the year, as recent data shows the US economy is not in as bad shape as previously feared. In addition the Federal Reserve remains concerned about inflationary pressure suggesting any possibility of a rate cut remains firmly on the back burner for now.Sydney 11.35 am (0015 GMT)US dollar117.43 yen1.2115 sfrEuro1.3523 usd158.80 yen1.6387 sfr0.6781 stgSterling1.9943 usd234.17 yen2.4155 sfrAustralian dollar0.8328 usd0.4175 stg97.775 yenNew Zealand dollar0.7220 usdbruce.hextall@Thomson.com-bhx/mbCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
|
|
|
|
|
|
Print this Story
Forex - US dollar mixed in early Asia trade as subprime concerns resurface 