The dollar dropped on increasing appetite for risk

2013-08-09 12:22:45

(MENAFN– ecpulse)

Currencies markets witnessed an increase in risk appetite, especially after economic data released from China this week showing more stability in the world`s second largest economy, which encouraged investors to accept more risk.

Traders decided to stay away of the American dollar alongside instability in U.S economic data and unclear plan from the Fed`s concerning stimulus programs. Such instability forced investors to choose high yielding currencies, especially after the cheerful data from China.

The Australian dollar recorded the biggest weekly gain since a year, benefiting from China`s positive data that showed advancing exports. China`s data has a great effect on AUD, as China is Australia`s main trade partner.

Moreover, AUD/USD pair rose to 0.91274 near the highest in a week, while AUD/JPY pair didn’t show remarkable gains because of the positive performance from the Japanese yen, and the pair is currently hovering around 88.15.

EUR/USD pair reached the highest in seven weeks at 1.3399, while GBP/USD rose to 1.5573 along with further declines for the dollar against major currencies.

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