| CATEGORY: FX |
FX round-up: Economic jitters lift dollar |
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Wed 04 Nov 2009
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LONDON (SHARECAST) - The dollar advanced against the yen and fell against the euro following a weak start to Tuesday’s session as investors look to the Federal Reserve’s two-day policy meeting and any comments about the health of the US economy.
The dollar index, which measures the greenback against a basket of six other currencies, rose to a month high on Tuesday as risk appetite waned on concern about the direction of this year’s massive stock market rally.
There were also jitters about the underlying health of the European banking sector after the UK Treasury confirmed it will be injecting more money into Royal Bank of Scotland and Lloyds while disappointing results from Swiss banking giant UBS also weighed.
UBS reported big third-quarter loss of 564m Swiss francs but said it expects to restore underlying profitability by 2010.
The euro fell to $1.4714 from $1.4764 on Monday while the greenback was little changed against the Japanese yen at 90.26 yen. Trading was light with Japanese markets closed for a holiday.
Sterling was down against the dollar but gained against a broadly weaker euro in a cautious session ahead of the outcome of Bank of England meeting on Thursday.
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