Euro rises vs dollar, plus reduced risk appetite for short bets

The euro rose on Monday as an improvement in the attractiveness of risky assets and the dollar hitting attack triggered a short hedges in the single currency, away from their recent lows of four years.

European shares rose sharply after rising in Asia. The U.S. stock futures were up 0.7 percent.

"The dollar was weaker overnight against the euro on the stability of the trust, which helped the currency recover more risk," said Geoffrey Yu, currency strategist at UBS.

"Equity markets globally are performing strongly, especially for supporting the expectation that the relatively expansionary policy will be maintained for a prolonged period globally," he added.

At 1115 GMT, the euro was up around 1 percent against the dollar at $ 1.2231, after touching an intraday high of 1.2258, according to Reuters data.

European shares gained 0.8 percent in early afternoon trading.

But analysts said it was unlikely that the recovery of the euro would take it out of its downtrend, as the structural problems in the euro area, which have impacted the currency has not changed.

"We've seen a good session for stocks. This is favorable to risk, driven by higher-yielding currencies like the Australian dollar. But fundamentally, nothing has changed against the euro," said Kenneth Broux, market economist at Lloyds Banking Group.

Traders said hedge funds have been reducing their short positions on a level of 1.2150 / $ 60 in Asia and across the 1.2220 in Europe.

The euro has lost 15 percent against the dollar so far this year, but gained 1.6 percent last week after hitting a floor of $ 1.1876, its lowest level since March 2006.

Some commented that the appetite for risk was also supported by the authorities such as the chairman of the Federal Reserve Bank of St. Louis Federal, James Bullard, who said he is running a strong global economic recovery.

The Australian dollar advanced almost 1 percent against the dollar to more than 0.8600, its highest level in a month.

The euro was up 1.4 percent to more than 112 yen for the first time in a week.

The dollar fell more than 1 percent against a basket of currencies to 86.446.

Analysts said the dollar could be undermined by so-called U.S. President Barack Obama and his advisers for more incentives to support the economy.

The pound sterling was up 1.2 percent against the dollar at $ 1.4718.

Yen and dollar fall, euro rises on worries about Greece

The yen and the dollar fell on Monday against the euro and high yielding currencies, as a jobs data better than expected U.S. on Friday and an easing in concerns drove the Greek debt investor demand for the risk.

The euro gained after encouraging remarks from key monetary authorities on the problems of debt in the euro zone. French President Nicolas Sarkozy vowed on Sunday that euro zone countries would help to Greece if they worsen their financial problems.

However, Managing Director International Monetary Fund, Dominique Strauss-Kahn, told Reuters it was unlikely that Greece's financial problems will spread to other euro area countries with high levels of debt.

Trust is kept up after a data on Friday showed job losses were less than expected, raising the view that the U.S. may be about creating jobs and affecting considered a refuge currency like the dollar and the yen.

"Greece is taking a breather from a market perspective, while the appetite for risk is driving the market. This gave the euro a bit of renewed support," said Niels From, analyst at Nordea in Copenhagen.
At 1049 GMT the euro was up 0.2 percent at $ 1.3642. Traders said that the level of short-term resistance was close to 1.3712, its highest March 4.

The dollar index was down 0.1 percent at 80.355.
Against the yen, the euro gained 0.2 percent to 123.25 yen, after hitting a two-month 123.80 yen on electronic trading platform EBS earlier.

BASIC METALS-Copper falls on doubts about recovery, dollar

Copper fell on Thursday as growing investor caution about the prospects of recovery after recent comments by the chairman of the U.S. Federal Reserve, Ben Bernanke.

The metal also fell by a firmer dollar against the euro due to the resurgence of fears about Greek debt.

The benchmark copper for delivery in three months on the London Metal Exchange (LME, for its acronym in English) was trading at $ 7105 a tonne at 1019 GMT from a close of $ 7155 on Wednesday.

Bernanke pledged Wednesday to keep interest rates low, leading to copper and other risky assets a brief boost. However, other statements about an uncertain economic recovery began to hit market confidence on Thursday.

A report on new home sales in the United States on Wednesday said the economic weakness. Sales fell more than 11 percent to a record low, suggesting the sector, at the epicenter of the financial crisis has yet to recover fully.

"The market is very nervous about what is happening in the world economy. This floor we saw recently in the trading euro / dollar could continue. There are fears that Europe will fall behind in this recovery," said Arne Rasmussen, analyst at Danske Bank.

Investors were on the lookout for economic data in the U.S. will later in the day, such as requests weekly unemployment insurance and durable goods orders, besides the second day of testimony by Bernanke.

The stronger dollar also weighed on metals, strongly encouraging them to investors who have other currencies.
The euro traded near the lowest in nine months against the dollar on Thursday after comments from Standard and Poor's, that could cut Greece's debt rating by one or two levels within a month.

Among other industrial metals, aluminum was $ 2102 a tonne against $ 2137.
Zinc traded at $ 2186 from $ 2204, while lead was at $ 2182 from $ 2215.

The tin was quoted at $ 16,950 from $ 16,975, and nickel from $ 20,450 to $ 20,470

Dollar opens higher following foreign markets fall

The dollar opened higher on Wednesday, pressured by a fall in international stock markets after they met at the previous session an item of consumer confidence in U.S. worse than expected, traders said.

At 0830 local time (1130 GMT), the spot rate reached 531.00 pesos buyer and seller 531.50, up by 0.4 percent, compared with 528.90 and 529.20 pesos Tuesday's close.

"The decline in weight is the continuation of a trend that began on Tuesday as a fact of consumer confidence in the U.S., which was worst than expected, dragged most global stock markets and so far still operating in negative, "said one trader.

A report on Tuesday showed U.S. consumer confidence fell in February to its lowest level since April 2009, to worsen the outlook on the labor market.

Managers also mentioned the falling copper prices in London as another factor that is influencing the decline of the Chilean currency, since after the U.S. data worsened the prospects for a rebound in Chinese demand for metal.

The dollar's decline accelerates, causing alarm in the currency markets

This mutant is a crisis as the worst viruses. The problems of a small segment of the U.S. credit, subprime, resulted in the worst financial storm in recent decades, and in turn the financial crisis moved to end leather whipping the real economy, which is hardly out of the worst recession since the war. A dangerous new mutation is in sight: the dollar accelerates its plunge yesterday and touched 14 months lows against the euro. Threatens to cause turmoil in the already volatile currency markets to lose ground to other major currencies in the past half year. The snowball is growing: several Asian central banks yesterday announced interventions to build dams to contain and stop this fall, in a moment of weakness in the U.S. economy.No self-respecting financial crisis has not led to a severe foreign exchange crisis. This possibility is remote, but the devaluation of the dollar adds uncertainty to the painful world economy that has barely even bend the corner to recovery. Much is at stake: the collapse of the dollar makes the output of the U.S. crisis, which lowers their exports. And retruque complicates the rest of the economies, especially the most exporting.
The difficulty for export is the main reason behind the wave of interventions by central banks of South Korea, Malaysia, Thailand, Philippines and Hong Kong, which yesterday bought dollars-or dollar-denominated assets to prevent further devaluation of the U.S. currency, very dangerous in countries making the foreign sector the engine of their economies. These movements, small-scale, are still recurrent in the currency markets in recent weeks, but go further: even Japan, the world's third largest economy and a leading member of the now almost defunct G-7, threatening a massive intervention to stop an escalation of the yen, in eight months highs against the dollar.
"The central bank interventions are not unusual in China and Brazil are doing every day, as oil exporters to compensate for movements of the market that suits them. The worry is if it begins to take larger it's hard to go against the market, "explained Paul Guijarro, International Financial Analyst (AFI).
Jose Luis Martinez, Citi added that such interventions "are cushioning the fall of the greenback. "But the pressure on the dollar is strong. It comes from the very weak U.S. economy, the U.S. monetary policy stimulus and a more speculative forces: investors are using cheaper to borrow dollars for something that previously required with other currencies, "he said.

In a day full of major economic policy decisions-the UK and the euro zone left interest rates unchanged at 0.5% and 1% respectively, the disarray caused by the dollar accounted prominence: gold hit a new high, and well above $ 1,000 an ounce, and crude oil climbed to $ 70 a barrel. Talk is cheap: the leaders of G-20 countries plus emerging rich-agreed last month in Pittsburgh working together to solve global imbalances, but virtually no mention of exchange rates, which appear as a major source of conflict.
U.S., the UK and to a lesser extent the euro area have enabled the machine to print money-purchase of public and private debt, which in practice is a hidden devaluation, the greater the more you give the machine. The emerging, which have fared better in the crisis, continue to accumulate reserves and serve markets for their currencies, in an uncoordinated way. And amid the swell, all is seemingly well: the U.S. has not abandoned the mantra of "strong dollar" but also complains about his downfall. Also the European Central Bank president, Jean-Claude Trichet, yesterday repeated the usual prescription: "We are campaigning to extend the use of the euro at the international level. Both the U.S. and Europe believe that a strong dollar is in the interest of the United UU. Yet today's dollar is anything but strong.

Moderate hikes in the stock of Europe to the weak dollar

European markets extendienden gains the previous session with gains less than 0.5 percent. Investors remain cautious before the devaluation of U.S. currency
The FTSEurofirst 300 index rose 0.13 percent to 994.05 points.
Mining stocks extended gains on Tuesday, while gold climbed to new highs above $ 1,040 an ounce, and copper remained relatively firm. Anglo American, BHP Billiton, Rio Tinto and Xstrata gained between 0.5 and 1.1 percent.
The European benchmark rose 2.2 percent Tuesday, its biggest daily percentage gain in nearly two months and a cumulative gain of more than 55 percent from its record low registered on March 9, driven by investors increasingly confident economic prospects.Some analysts advised caution, saying that much of the recent rise in the stock was due to rising metal prices, fed in turn by the weak dollar.
"Demand for commodities is not growing. Prices of raw materials are fooling us, because they are covered by the layer of the dollar. Scoop layer and raw materials will look weak," said Justin Urquhart Stewart, director at Seven Investment Management .
The insurance sector also rose, benefiting from rising stock markets worldwide. Aviva gained 3.60 percent, while AXA and Prudential jumped more than 1.2 percent.
Energy companies were among the more ground they lost, although the price of oil held above $ 71.Shares of Total, BP, Repsol YPF and Royal Dutch Shell fell between 0.5 and 1.4 percent.
Among the local markets of the region, Britain's FTSE 100 rose 0.1 percent, Germany's DAX 0.16 percent and the Paris CAC-40 climbed 0.23 percent.

Dollar operates under pressure after G-7, hit by rising shares

The dollar weakened on Monday after a meeting of the G7 over the weekend reaffirmed the view that market officials are comfortable with a gradual fall of the dollar.
This trend was encouraged by the resilience of global equity markets.
The biggest beneficiary was the Australia dollar, which was also boosted by the growing speculation that the Reserve Bank of Australia this week could raise interest rates, becoming the first major economy to adjust liquidity.
Global stocks were held on Monday despite a weak U.S. jobs report that was disclosed on Friday.
The weak jobs data suggest that U.S. monetary policy will remain very flexible, encouraging traders to buy currencies perceived as more risky assets like stocks as well.

"The risk was recovered strongly enough (...) and that leads to a general weakening of the dollar today. The market wants accumulate 'risk positions' again," said Geoff Kendrick, currency strategist at UBS in London."The G-7 may have been a red light (to sell dollars), but no change," he added.
Following a meeting of finance chiefs from Group of Seven held in Istanbul, traders were betting on a further weakening of the dollar, which serves to resolve imbalances between consumers and indebted countries like the U.S., and producing nations and saving like China.
At 1044 GMT, the dollar index, a measure of performance of the currency against six major currencies, fell 0.25 percent to 76.85.

The euro rose 0.4 percent to $ 1.4620, supported in part by a gain of 0.4 percent in European equities, while stock futures in the United States totaled 0.5 percent.The euro recovered after falling below $ 1.45 on Friday when it was announced that nonfarm payrolls fell by U.S. 263,000 in September, prompting a wave of dollar buying as a safe haven.
The market was also the expectation of monetary policy announcements made on Thursday the European Central Bank (ECB) and Bank of England.

The WB president sees the influence of the dollar fall

"America would be wrong to assume the place of the dollar as the dominant reserve currency in the world," said Robert Zoellick.
United States will face a decline in the influence of its currency to the changes in the global economy, which inevitably reinforce other currencies, said World Bank President Robert Zoellick, in a speech inWashington.
"America would be wrong to assume the place of the dollar as the dominant reserve currency in the world," Zoellick said in his speech at the School of Advanced International Studies at John Hopkins University.

"Looking ahead, there will be more alternatives to dollar," said highlighting the emergence of the euro and slowly, the Chinese renminbi.
Overlooking the annual meeting of the World Bank and International Monetary Fund (IMF) this week in Istanbul, Zoellick said the financial crisis is This amendment to "power relations" and urged that greater voice to developing countries in multilateral institutions.
Zoellick welcomed the decision to promote the Group of 20 (G20) as the main block for international economic cooperation, as decided by those attending the meeting in Pittsburgh, Pennsylvania, on Friday.
They also agreed to establish a framework to monitor the economic policies of other countries in an attempt to make growth more "balanced" in the future.

Dollar trims losses against the yen after U.S. inflation data

The dollar pared losses against the yen on Wednesday after a government report showed a rise in consumer prices in the U.S..

Against the yen, the dollar rose to 90.44 units from the previous 90.34, but still down 0.67 percent on the day. The euro fell to 1.4661 per dollar from 1.4676 before knowing the data, and haunted the session low of 1.4655.

The dollar fell to its lowest annual

The dollar fell on Friday to one-year lows against a basket of currencies, because of continuing concerns about its future value back to cloud the short-term technical picture, preventing a brake on sales of the greenback.

The dollar index, which measures its value against six major currencies, headed for its weekly fall deeper in nearly four months and the euro headed for its biggest weekly gain in the same period, after reaching the maximum of 2009 of 1 , $ 4627.

Strengthening China's economic data also fed the hopes of global recovery, which tempts investors to exit the dollar to move to riskier currencies.

On Friday, an official with the U.S. Treasury said it makes sense that China diversify its huge foreign reserves, which, at least marginally, fueled the feeling pessimistic about the dollar strengthened this week.

"It does not help the dollar, but he (the official) ties him to the idea of the creation of new reserve currencies, which, as we know, take a long time," said Paul Mackel, currency strategist at HSBC in London.

David Dollar, emissary for economic and financial affairs of the U.S. Treasury in China, said that greater diversification of China's international reserves, and the internationalization of the yuan, are meaningless.

"The general theme is that China has a huge amount of reserves and diversify makes some sense" these reservations, Dollar said at a meeting of World Economic Forum in the Chinese city of Dalian.

"It's healthy to have a wide variety of different types of reserve currencies," he added. The dollar index was down 0.25 percent to 76.63 daily, even after falling earlier to 76.511, its lowest since September 2008.

The euro rose 0.2 percent on the day at $ 1.4600, accumulating a rise of 2 percent in the week. The dollar declined by 0.9 percent a day against the yen at 90.90 units from Japan, after earlier falling to its lowest in seven months of 90.69 yen according to Reuters data.