The dollar held its ground in quiet dealing Tuesday, staying near a 4-year peak against the struggling euro.
Concerns that the global economic recovery may be petering out due to the debt crisis gripping Europe have renewed interest in safe haven investments, particularly the US dollar.
Gold has also risen sharply of late, and closed at a record high settlement near $1245 today.
Stocks were mixed on Wall Street, further clouding a day bereft of first-tier economic data from the US.
Yesterday, Fed Chairman Ben Bernanke said he sees the economic recovery gaining momentum, and that the US will likely avoid a double-dip recession.
Looking at today’s currency charts, the dollar snapped back from early weakness versus the euro, moving back to 1.1920. The buck touched a 4-year peak of 1.1805 on Monday.
The dollar closed near 1.1800 on the day of the euro’s inception in 1999.
With austerity measures seen preventing a robust recovery in either the euro zone or UK, the dollar enjoyed gains against the sterling, rising to a 2-week high near 1.4350.
The buck remained directionless versus the yen, staying near Y91.
Later today, the ABC News Consumer Confidence Index will be released, giving the markets a look at the mindset of the recovering US shopper.
Wednesday’s economic calendar will feature data on weekly mortgage applications, the Fed’s Beige Book, and speeches from Bernanke and Richmond Fed head Jeffrey Lacker.
Great information! I’ve been looking for something like this for a while now. Thanks!