Dollar falls on risk appetite
Slight gains in European shares suggest that risk appetite is holding up after mixed corporate earning results. The resulting appetite has led the greenback to slip, edging closer to seven-week lows against the euro and a handful of other currencies. The European shares rose 0.2% early on and are heading for a ninth straight daily rise. Despite the consecutive gains, analysts said significant risk-related gains in currencies may be limited based on concerns of the weak global economy.
The increased risk appetite bodes well for high risk currencies such as the sterling and the New Zealand dollar. Each currency rose around 0.4% against the US dollar, and gained more than 1% against the slightly weaker yen.
The dollar's exchange rate has been affected by risk appetite to stand at GBP0.6055 and EUR0.7027.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.