Currency Exchange UK

 

Dollar Falls after G7 Meeting

US Dollar falls after G7 Meeting

The US dollar fell today after the weekend G7 meeting failed to bring any surprises for the financial market. 

The meeting’s outcome meant that markets took a ‘comfortable’ signal from policymakers on the gradual dollar weakening.  It is therefore hoped that the dollar’s retreat means a rebalancing on the global economy.

Traders took bets on a weaker dollar in the aftermath of the weekend meeting but against the yen it remained strong.  Japan is facing difficulty as authorities there consider intervening in the currency to aid exports.  This means currency investors are shying away and heading to other pairs.

On Friday, an employment report from the US showed poor results with jobless numbers still very high.  However, global stocks showed strong performances despite this. 

Currency traders have been heading back to so-called risky currencies including the Euro and commodity currencies perceived to be high-yielding.