March 11, 2010

U.S. Dollar falls as Demand for Risk Surges

The U.S. Dollar declined into the close after trading in a tight range most of the day. A strong surge in the equity markets late in the session confirmed investor demand for risky
assets, thereby pressuring the lower yielding Dollar.

At times on Thursday, traders were demanding lower yielding currencies in response to an overnight report that showed China’s consumer-price index spiked higher in February. Investors
speculated that its central bank would have to raise …