Dollar Declines as Investors Turn to Stocks

The dollar fell 0.4 percent to $1.3752 euros at 8:11 am in New York today as investors opted for equities in the wake of a series of positive data releases suggesting the US economy is stabilizing. The euro is being supported by growing speculation that the European Financial Stability Facility may buy toxic government debt.

“We continue to get generally positive data out of the U.S. that supports a global growth story, and the Egypt situation hasn’t spread in any major way to any other Arab nations,” said Stephen Gallo, head of market analysis at Schneider Foreign Exchange in London. “So global risk assets are supported. The move by the EFSF on balance will be euro- supportive.”

Source: Bloomberg