As news from Dubai came out, Forex investors fled to the relative safety of the US Dollar, pushing the Greenback up across the board on Friday.
Although the closed US session on Thursday due to a holiday as well as the very light trading on Friday may have inflated the moves in Forex, the fear of Dubai’s credit default is certain to have lasting impacts on the markets.
The ICE Dollar index rose just under one percent on Friday after flirting with record lows only a day earlier. Analysts believe that while the restructuring request by government backed Dubai World of about $80 Billion in debt is big in itself; it could spell the beginning of another wave of defaults – this time on the governmental level.
At the close, the US Dollar was trading up 1.2% against the Euro to 1.4966, up .21% against the British Pound to 1.6497, up .33% versus the Australian Dollar to .9075, up .24% to the Swiss Franc to 1.0064 and even with the Canadian Dollar to 1.0625.
No comments:
Post a Comment