Currencies: Dollar Regains Strength After Dow's Move Higher - TheStreet

Currencies: Dollar Regains Strength After Dow's Move Higher

Author:
Publish date:

The dollar is making slight gains this morning after a week of losses.

The late-day court rulings in the continuing U.S. election fiasco boosted the American stock markets, in turn aiding the previously weakening currency. "The dollar got a bit of a bounce from last night's developments," said Tim Fox, currency strategist at

Standard Chartered Bank

.

The double dishing of disappointment for the

Gore

team yesterday boosted blue-chips in the after-hours markets, helping to strengthen the dollar, which has been slipping recently due to the combined election uncertainties and stock market declines. A presidential victor, any victor, is seen as a positive to the U.S. stock markets now.

Monthly euro-zone economic data was also reported early this morning, noting a smaller-than-expected fall in unemployment and a continuing decline in the European services sector. This report led to a further softening of the euro in early day trading.

"It's nothing really to get excited about," said Fox. He said that people will likely regard the gains of the dollar against the euro as a correction instead of what he believes to be a continuing general trend of a strengthening euro. The euro was recently trading at $0.8821 this morning, down from a close of $0.8890 yesterday.

The dollar is down slightly this morning on the yen, following blue-chips' gains overnight. "The slightly better stock markets support the Asian currencies," said Fox. The yen was up only slightly this morning, recently at 110.66, having closed at 110.95 yesterday. The euro/yen cross was down this morning, reversing its recent upward trend also, trading recently at 97.63, down from yesterday's close of 98.54.

Around the world, major currencies were losing recent gains on the dollar. The Australian dollar fell this morning versus the U.S. dollar, slipping to $0.5412 from a close yesterday of $0.5444. The British pound followed suit and was recently trading at $1.4446, down from yesterday's close of $1.4528.

Bucking the general trend for a second consecutive morning, the Canadian dollar made slight gains this morning, with the U.S. dollar trading at C$1.5405, down from a close yesterday of C$1.5428. After slight losses yesterday morning, the Canadian dollar joined with the rest of the major global currencies to gain on the U.S. dollar by midday.