Tuesday, October 2, 2012

US Dollar Slides as Data Fuels Safe-Haven Exit

Is it safe to keep your cash in US Dollars? Think again.

The U.S. dollar fell from a three-week high against major currencies but the yen weakened on Monday after a report of a rise in U.S. manufacturing activity prompted a sell-off in safe-haven currencies. The U.S. manufacturing sector in September grew for the first time since May, getting a boost from new orders. Also giving risk appetite a boost was an increase in Germany's purchasing managers' index (PMI), which rose last month to its highest reading since March, although it was still below the 50-mark dividing expansion from contraction. "While the U.S. economy experienced a 'soft patch' in growth during Q3, today's report adds to evidence of a modest recovery," wrote Michael Woolfolk, senior currency strategist at BNY Mellon Global Markets in New York.

FOREX-U.S. dollar, yen slide as data fuels safe-haven exit | Reuters

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Breaking US Dollar Collapse News

What's Behind the Decline of the US Dollar?

This is one the of the best and simplest explanations we have seen:
The U.S. dollar's downward slide is accelerating as low interest rates, inflation concerns and the massive federal budget deficit undermine the currency. - Wall Street Journal, April 23, 2011
Interestingly, the Federal Reserve is responsible for, or an active participant in all three of these factors.

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