The greenback, as the dollar is often referred to, climbed versus virtually all of the 16 most traded currencies, as unfavorable economic reports worldwide brought risk aversion up among traders this week, favoring the low-yielding safety profile of the North American currency.Since last week’s employment report in the U.S. showing worse than expected numbers, risk aversion has returned to markets, and this week, multiple news coming from North America, as a report showing a fall in consumer confidence, and globally, as pessimist speculations for several European Union nations, pushed equities markets down globally, reflecting in currency markets movements. The Swiss Franc lost against the dollar as central bank’s President Jean-Pierre Roth said policy makers will continue to buy foreign currencies to stop the national currency rally. The Ruble lost against the dollar after Bank Rossii cut its benchmark interest rates and the crude oil, the main Russian export, fell below $60 a barrel in New york.
Analysts believe that the U.S. dollar may continue bullish as it is hard to expect that extremely optimistic news will revert the current pessimistic trends in currency and equities markets. The dollar’s position as the main world currency may be discussed in the upcoming weeks, which is the only foreseeable factor that can bring the greenback down for the short-term future.
USD/CHF ended the week at 1.0858 climbing from a previous rate of 1.0777. USD/RUB traded at 32.7380 from 31.8580.
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