Dollar slides as markets begin to recover from Brexit
Investing.com
Published Jun 28, 2016 05:41AM ET
Dollar moves lower as market sentiment improves
Investing.com - The dollar moved lower against the other major currencies on Tuesday, as concerns sparked by Britain’s decision last week to leave the European Union began to ease and investors turned to riskier assets.
GBP/USD was up 0.62% at 1.3309, off the 31-year low of 1.3122 set on Monday, a level not seen since 1985. The two-day selloff in sterling seen on Friday and Monday was the largest in recent history.
Global stock markets suffered the largest two-day rout ever, as a wave of selling wiped around $3 trillion from markets.
Ratings agencies Standard & Poor’s and Fitch Ratings both downgraded their credit ratings for the U.K. on Monday and warned that further cuts are possible.
S&P, the only major ratings agency to maintain a Triple A rating for the U.K., cut its rating by two notches to AA, warning that Brexit posed a risk to the constitutional and economic integrity of the U.K.
Fitch lowered its rating from AA+ to AA, forecasting an "abrupt slowdown" in growth in the short-term.
U.K. Prime Minister David Cameron was to travel to Brussels later Tuesday to discuss the Brexit vote with EU leaders.
EUR/USD rose 0.38% to 1.1067, pulling further away Friday’s three-month trough of 1.0908, while EUR/GBP slipped 0.26% to 0.8313, still close to Monday’s two-year peak of 0.8378.
USD/JPY added 0.20% to 102.20 after falling to lows of 99.15 on Friday, the weakest level since November 2013, while USD/CHF edged up 0.09% to 0.9793.
The Australian and New Zealand dollars were stronger, with AUD/USD up 1.02% at 0.7403 and with NZD/USD jumping 1.07% to 0.7071.
Elsewhere, USD/CAD declined 0.67% to 1.2986.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.39% at 96.17, off the previous session’s three-month highs of 96.86.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.