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Dollar Slows on Hard Sell

Dollar Slows on Hard Sell

Hard selling of the dollar slowed down on Wednesday but it still stayed low against many of the major currencies.  

This was mainly due to continued uncertainty over the dollar – its status as world reserve currency and general ‘safe haven’ have all been repeatedly pulled into question of late.

Earlier in the week, gold prices hit six-month highs at $1,000 an ounce – this served to jeopardise the dollar’s position together with an increase in euro purchases.  As risk appetites have slowly returned to money markets, so riskier currencies have enjoyed the limelight.  

The US dollar has therefore been left behind of late and worries over the future of the US economy continue despite a small improvement in business confidence.

Shares fell on a global scale midweek as did US stock Futures.  However, it is believed that the dollar will gain more support in the near future.