Dollar slumps to six-week low
Investors are looking for risk assets on bets higher yielding assets will gain on increased company earnings and as CIT Group Inc. was said to be close to a USD3 billion lifeline from bondholders. The increased risk appetite has people leaning away from safe haven currencies like the US dollar and the yen. As a result, the US dollar dropped to a six-week low against the euro, declining 0.8% to USD1.4220.
The US currency is taking a hit from many of the world's major currencies today as New Zealand's dollar climbed to its highest level since early June, the Canadian dollar advanced on risen commodity prices, and the pound jumped to its most in more than a week. The yen didn't fare much better as it weakened versus all of the 16 most traded currencies tracked.
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