The U.S. currency is having a negative start in this year’s first session as stocks and commodities rose worldwide, boosting demand for higher-yielding assets and currencies from commodity exporter countries, leaving the greenback in a second plan of attractiveness.
After the crude oil traded above $80 a barrel today, the greenback posted a declined versus all of the 16 main traded currencies, showing the sharpest fall versus commodity exporter’s currencies, like the Canadian and Aussie dollar. Stocks rose firstly in Asia and then globally as markets opened today after a report in China indicated another advance in manufacturing production, which consequently set risk appetite to high levels today, affecting negatively not only the greenback but also the Japanese yen, the safest refuge for bearish trading days.
Optimism regarding the start of a new year and the global economic recovery are having a negative effect on the dollar performance today, as traders opt for riskier bets expecting that emerging markets and commodity exporting nations will provide the highest returns this year, as the global economy revives. A higher demand for oil is playing an important role on dollar’s downtrend today.
EUR/USD traded at 1.4421 as of 14:48 GMT from a previous rate of 1.4273 when markets opened yesterday. USD/CAD traded at 1.0391 from 1.0487.
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