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Market Review - 14/04/2009 21:29 GMT
Dollar and yen rise on increasing risk aversion bids
The greenback and yen rose on Tuesday as investors bought the two safe-haven currencies after disappointing U.S. retail sales data, which unexpectedly fell by 1.1 percent in March as soaring job losses forced consumers to cut back on their purchases and implied that the recession is likely to persist. The ICE futures U.S. dollar index added 0.16 percent to 84.752 in late New York afternoon session, after surging to as high as 85.059.
The dollar weakened against the yen on the decline in U.S. stocks after the surprising drop in retail sales data weighed on the greenback. The Dow Jones industrial average tumbled 137 points or 1.71 percent to close at 7,920, while S&P’s 500 index and Nasdaq Composite index fell 2.01 percent to 841 and 1.67 percent to 1,625 respectively. Usd/jpy fell below the 99.00 level and touched a session low of 98.74.
Risk aversion also put pressure on the euro and high-yielding currencies such as Australian and New Zealand dollars, which dropped to session lows of 1.3226, 0.7229 and 0.5836 respectively versus the U.S. dollar, and 130.90, 71.13 and 57.56 against the yen.
Other economic reports from U.S. showed that prices paid to U.S. producers unexpectedly fell 1.2 percent in March after two months of gains, indicating the recession is keeping inflation under control.
On Wednesday, economic data releases include U.K. RICS house prices and DCLG house prices, Australia Westpac leading economic index, Japan capacity utilisation and industrial production, and U.S. CPI, Midwest manufacturing, net long-term TIC flow, foreign treasury buys, industrial production, capacity utilisation and NAHB housing market index.
Dollar and yen rise on increasing risk aversion bids
The greenback and yen rose on Tuesday as investors bought the two safe-haven currencies after disappointing U.S. retail sales data, which unexpectedly fell by 1.1 percent in March as soaring job losses forced consumers to cut back on their purchases and implied that the recession is likely to persist. The ICE futures U.S. dollar index added 0.16 percent to 84.752 in late New York afternoon session, after surging to as high as 85.059.
The dollar weakened against the yen on the decline in U.S. stocks after the surprising drop in retail sales data weighed on the greenback. The Dow Jones industrial average tumbled 137 points or 1.71 percent to close at 7,920, while S&P’s 500 index and Nasdaq Composite index fell 2.01 percent to 841 and 1.67 percent to 1,625 respectively. Usd/jpy fell below the 99.00 level and touched a session low of 98.74.
Risk aversion also put pressure on the euro and high-yielding currencies such as Australian and New Zealand dollars, which dropped to session lows of 1.3226, 0.7229 and 0.5836 respectively versus the U.S. dollar, and 130.90, 71.13 and 57.56 against the yen.
Other economic reports from U.S. showed that prices paid to U.S. producers unexpectedly fell 1.2 percent in March after two months of gains, indicating the recession is keeping inflation under control.
On Wednesday, economic data releases include U.K. RICS house prices and DCLG house prices, Australia Westpac leading economic index, Japan capacity utilisation and industrial production, and U.S. CPI, Midwest manufacturing, net long-term TIC flow, foreign treasury buys, industrial production, capacity utilisation and NAHB housing market index.
