U.S. dollar currency bounce back in the last eight months against major rival currencies other world Tuesday local time. Strengthening was triggered by a decline in German business confidence index and the Consumer Trust Index in the United States.
Concerns about the resilience of the global economic recovery and back up again raises the interest of investors to hold U.S. dollars which was considered relatively safe compared with stocks and commodities.
U.S. dollar index against six major world currencies in the New York market pasnaik to 80.87 from 80.51 Monday positions. Even the index had touched its highest level in at 80.98 noon local time yesterday.
European Union currency fell to U.S. $ 1.3521 from the previous position at U.S. $ 1.3609.Pounds Sterling also weakened to U.S. $ 1.5438 from the previous position at U.S. $ 1.55.However, against the Japanese currency weakened to as low as 90.21 per dollar from the previous position at 91.14 per dollar last Monday.
U.S. dollar index bounce back after U.S. consumer confidence also fell below economists’ estimates in a survey of MarketWatch.
Market reaction is once again emphasized that the U.S. dollar is still considered a safe place for investment as investors appeared uncertain. Stock market and commodities considered to be too optimistic about economic prospects. However, with improving the economy, the currency with higher interest rates will return to the attention of market participants.
Negative sentiment of the European Union also helped the dollar strengthen. ”The weak European economic data will be pressure for consideration of euro bari risk,” said Alan Ruskin, head of Currency Strategy at RBS.