The US dollar gained for the seventh consecutive session on Tuesday against its major rivals in reaction to the euro zone’s political and economic crisis. Investors were also concerned over the health of the Spanish banks.
The single currency declined to 1.3014 against the US dollar on Tuesday as compared to 1.3053 on Monday’s late trading hours. The pair EUR/USD touched its intraday low of 1.2981 versus the greenback
The dollar index DXY which tracks the US dollar’s movement versus its six major rival currencies gained to 79.719 on Tuesday as compared to 79.611 on Monday’s North American trading session. For the dollar index it was the seventh consecutive session surge since September 2008 when Fannie Mae and Freddie Mac were taken under by US government before filling of Bankruptcy by Lehman Brothers.
Currency strategist, Neil Mellor from the Bank of New York Mellon commented, “the euro must now face up to a renewed period of heightened political uncertainty, which will include even more critical questions surrounding Greece’s membership [in Europe’s Economic and Monetary Union] and Germany’s growing political isolation.”
Among other currencies, the British Pound fell to 1.6158 against the US dollar on Tuesday as compared to 1.6185 on late Monday. Against the Japanese yen, the greenback slipped to 79.81 on Tuesday as compared to 79.95 on late Monday.
The Australian dollar fell to 1.0125 against the US dollar on Tuesday as compared to 1.0207 on Mondays’ late trading hours.
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