Market info

Dollar mixed in quiet trading

09 Mar  - Fundamental 

The dollar recovered losses versus the euro and rose against the pound, but fell versus the yen in quiet trading Tuesday and as equities declined.

What prices are doing: The dollar gained 0.6% against the euro to $1.3549 and rose 0.6% versus the pound to $1.4970. The greenback fell 0.55% against the yen to ¥89.81.

On Monday, the dollar slipped against the euro after French President Nicolas Sarkozy said Europe is ready to help Greece if needed, boosting investor optimism about the nation's debt crisis. The dollar fell against the pound as well, but edged up versus the yen.

What's moving the market: With a lack of economic data scheduled Tuesday, investors will look to stocks, which tend to move inversely to the U.S. currency. Weaker equities lift the dollar, which is viewed as a safe haven for investors.

Stocks were poised to open lower Tuesday as investors expressed uncertainty about the outlook for markets one year after the Dow and Standard & Poor's 500 Index closed at 12-year lows.

What analysts are saying: «The dollar is by default finding some support as risk aversion seems to be the dominant factor today,» said Dean Popplewell, a chief currency strategist at Oanda Corp. «People are certainly still worried about the contagion factor in Greece, so it's all about risk aversion and the question of global sustainable growth.»

Without economic data to guide sentiment, volume is low as investors await a report on retail sales later in the week, said Popplewell.

Down the road, he expects the dollar will rise as the euro declines on continued economic weakness abroad.

«There were loose comments from the prime minister of Greece saying that this is not a contained situation, so traders are definitely looking for a weaker euro,» he said. «It really is a matter of whether Europe will get its act together.»

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