NEW YORK (CNNMoney.com) -- The dollar continued to gain ground Tuesday, trading at a one-year high against the euro, as investors remain nervous about broader debt problems in Europe.
What prices are doing: The dollar gained 1.46% versus the euro to $1.3004 -- holding near its lowest levels since mid April 2009. It was up 0.56% on the pound to $1.5158. Against the yen, the dollar fell 0.1% to ¥94.46.
What's moving the market: The euro remained under pressure as ongoing debt fears weighed on global stock markets.
U.S. stocks fell more than 200 points in afternoon trading, following sharp declines in Europe on worries about Greece and other struggling economies in the region.
Shares in China fell after the country said manufacturing grew at a slower-than-expected pace in April. Investors were also reacting to news over the weekend that China has boosted its bank reserves.
In Europe, finance officials agreed on Sunday to provide Greece with a $146 billion bailout package in exchange for strict new austerity measures.
But the outlook for Greece and other troubled European economies remains uncertain and traders said the euro will remain volatile until a long-term solution is hatched.
"The market's focus has turned from relief at the Greek aid package back to worries that it isn't enough and that it addresses liquidity more than solvency," said Camilla Sutton, a currency strategist at Scotia Capital in Toronto.
At the same time, concerns that Spain and Portugal could be next to suffer a major fiscal meltdown were heightened after Standard & Poor's downgraded the sovereign debt of both nations last week.
While maintaining investment grade ratings, S&P placed a negative outlook on both countries, signaling the possibility of further downgrades.
"Confidence will deteriorate further if there are further rating cuts on other Euro-zone economies over the next few days," analysts at London-based Sucden Financial said in a research report.
What analysts are saying: Analysts said currency traders are also looking ahead to the U.S. government's monthly jobs report, which comes out Friday, for signs the world's largest economy is continuing its recovery.
Economists surveyed by Briefing.com expect employers added 187,000 jobs in March after a gain of 162,000 the month before. The unemployment rate is forecast to hold steady at 9.7%.
"There will also be broad optimism over solid employment report as a whole which would reinforce market expectations that the U.S. economy will out-perform the Euro-zone and provide some dollar support," according to Sucden Financial.
Overnight Avg Rate | Latest | Change | Last Week |
---|---|---|---|
30 yr fixed | 3.80% | 3.88% | |
15 yr fixed | 3.20% | 3.23% | |
5/1 ARM | 3.84% | 3.88% | |
30 yr refi | 3.82% | 3.93% | |
15 yr refi | 3.20% | 3.23% |
Today's featured rates:
Index | Last | Change | % Change |
---|---|---|---|
Dow | 32,627.97 | -234.33 | -0.71% |
Nasdaq | 13,215.24 | 99.07 | 0.76% |
S&P 500 | 3,913.10 | -2.36 | -0.06% |
Treasuries | 1.73 | 0.00 | 0.12% |
Company | Price | Change | % Change |
---|---|---|---|
Ford Motor Co | 8.29 | 0.05 | 0.61% |
Advanced Micro Devic... | 54.59 | 0.70 | 1.30% |
Cisco Systems Inc | 47.49 | -2.44 | -4.89% |
General Electric Co | 13.00 | -0.16 | -1.22% |
Kraft Heinz Co | 27.84 | -2.20 | -7.32% |
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