CNNMoney.com
Companies Economy International Corrections Pre-market Trading After-hours Trading Winners/Losers/Actives Bonds Currencies Commodities World Markets Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Ask the Expert Ultimate Guide to Retirement Retirement Calculators Best Funds Best Places to Retire Fortune Brainstorm Tech Apple 2.0 Blog Big Tech Blog Sectors and Stocks Tech Talk Resource Guide Small Business Makeovers Questions & Answers Small Business Video 100 Best Places to Launch FSB 100 Fortune Small Business Fortune 500 Brainstorm Tech Investing Management C-Suite Rankings Main Create Portfolio Edit Portfolio Create Alerts Edit Alerts
Currency Center

Dollar climbs as risk appetite dissolves

Turmoil on Wall Street gives the dollar a lift against the euro as investors shy away from risk, but it falls back below ¥100.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Ben Rooney, CNNMoney.com staff writer

v2-cnnmoney-chart4.mkw.jpg
click here
What should states and cities try first to deal with the financial crisis?
  • Cut services
  • Raise taxes
  • Ask Washington for help

NEW YORK (CNNMoney.com) -- The U.S. dollar rose against the euro and the pound Thursday, but fell back below ¥100 as investor's appetite for risk was ruined by falling stock prices.

The 15-nation euro bought $1.3634, down from $1.3677 late Wednesday in New York. And the British pound slipped to $1.7183 from $1.7289.

The dollar was under pressure earlier in the session as European stock markets rebounded. But the buck started to gain ground against the euro and the pound after the U.S. stock market slumped.

"Now that stocks are down, it's generating some renewed interest in the dollar as a risk aversion trade," said Asharf Liadi, Chief FX Strategist at CMC Markets in New York. "The correlation between stocks and currencies remains in place."

Despite the economic turmoil in the U.S. economy, the dollar is still seen as a relatively safe haven by many currency traders. Hence, when stock prices fall, the greenback often rallies against the higher-yielding euro and pound.

But the dollar remained weak against the lower-yielding yen. The U.S. currency fell to ¥99.96 versus ¥101.12 in the previous session. The dollar had previously fallen to ¥99.73 at noon on Wednesday.

The dollar's advance comes one day after central banks in Europe and North America collectively lowered interest rates in an attempt to stabilize shaky financial markets.

While the emergency rate cuts were a necessary step towards reestablishing confidence in world markets, the depth of the problems facing the global economy mean that their impact on the market "may not be felt for some time," Liadi said.  To top of page

Track 17 major currencies

Features
  • 091020_nuclear_0154.04.jpg
    Minimum wage to $20 an hour. That's what Sally Delk hopes for with a job at the nuclear power plant.  More
  • charlotte_then_now.gi.04.jpg
    Charlotte Street was the epicenter of urban blight. No longer. Now Bimmers and boats fill driveways. More
  • excon-pic-2.04.jpg
    Ex-convicts like Gregory Headley are 'at the back of the line' in the struggle to find work.  More
  • package.gi.04.jpg
    Steve Jobs revived Apple, defying the worst economic conditions since the Great Depression. More
  • droid.04.jpg
    Consumers looking to buy electronics for holiday gifts won't have to break the bank this season. More
  • airport_luggage.ju.04.jpg
    Search firm says it will pay the bill for wireless Internet during the holidays. More
  • twitter_screenshot.04.jpg
    Twitter and LinkedIn hook up, signing agreement to let users share information across both platforms. More
Markets Last Change
Dow Jones 10,270.47 73.00 / 0.71%
Nasdaq 2,167.88 18.86 / 0.88%
S&P 500 1,093.48 6.24 / 0.57%
10-year Bond 99 19/32 Yield: 3.42%
U.S.Dollar 1 euro = $1.496 0.004
November 13, 2009 4:01 PM ET
CompanyPrice% Change
YRC Worldwide Inc 1.12 22.53%
Blockbuster Inc 0.76 -8.46%
Dollar General Corp 22.64 7.81%
JC Penney Co Inc 31.34 6.63%
Nov 13 3:53pm ET †
More Galleries
6 double dip warning signs The recovery from the Great Recession has likely started. But many economists are worried about falling into another downturn. Here's what has them concerned. More
America's Money: In their own words Across the nation, the deepening economic downturn is fueling anxiety among everyday folks. See what's got them worried and how they're coping. More
Pieces of Madoff Many of Bernie Madoff's victims wanted a piece of the felonious financier. This week they could get one: Hundreds of his and Ruth's possessions went up for auction Saturday and they fetched nearly $1 million, a lot more than expected. More

© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.