December 17, 2009
Flight to Safety Rally Sends Dollar to Three-Month High
The U.S. Dollar reached a three-month high today. The strong surge to the upside was fueled by S&P’s downgrade of Greece’s credit rating. This strong rally started last night but
gained strength throughout the day on the possibility of more downgrades of Euro Zone sovereign debt. Investors treated the Dollar as a safe-haven investment on the fear that the spread of bad debt
throughout the region could trigger serious banking issues, curtailing the current economic recovery.
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