By Ye Xie and Oliver Biggadike
Aug. 28 (Bloomberg) -- The dollar may extend its decline against the euro on reduced demand for safety after crude oil and U.S. stocks rebounded, encouraging traders to sell the U.S. currency to limit losses.
The Canadian dollar advanced yesterday against its U.S. counterpart by the most in two weeks as crude oil rose after failing to sustain a drop below $70 a barrel. The Norwegian krone also gained. The dollar depreciated versus most of its major counterparts, declining to the weakest level this year versus the Swiss franc.
“The turnaround in oil and equities set off the moves in commodity currencies,” said Alan Ruskin, head of international currency strategy in North America at RBS Securities Inc. in Stamford, Conn. “Long-dollar positions have been stopped out big-time.” A long is a bet a currency will appreciate.
Looks like the black gold is still in charge then!
No comments:
Post a Comment