Dollar Mixed as Tax Cut Extension Stimulates Optimistic Economic Outlook -Shanghai Metals Market

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Dollar Mixed as Tax Cut Extension Stimulates Optimistic Economic Outlook

Data Analysis 10:22:28AM Dec 09, 2010 Source:SMM

NEW YORK, Dec. 9 -- The U.S. dollar traded mixed against major currencies in late New York trading on Wednesday as optimism on U.S. economy was promoted by tax cut extension plan.

The dollar traded around 84 against the yen in late trading session, while the euro fluctuated against the dollar, and barely reached the level of 1.325.

The proposed extension of tax cuts plan by President Obama raised growth expectation for the U.S. economy, the 10-year U.S. Treasury yield went up to 3.25 percent, a level not seen since late June, which reflected risk-aversion was fading in the market, while investors were seeking higher-return investments.

For the first time in weeks, investors' attention was shifted to U.S. economic fundamentals from euro zone debt concerns, and the optimistic view on the U.S. economy would somewhat support the greenback, according to some analysts.

In late Wednesday trading, the dollar bought 84.07 Japanese yen, comparing with 83.46 late Tuesday, and the euro fell to 1.3261 dollars from 1.3284.

The British pound rose to 1.5802 dollars from 1.5769. The dollar fell from 0.9873 to 0.9868 against Swiss francs, but rose to 1.0105 Canadian dollars from 1.0094.

 

Dollar Mixed as Tax Cut Extension Stimulates Optimistic Economic Outlook

Data Analysis 10:22:28AM Dec 09, 2010 Source:SMM

NEW YORK, Dec. 9 -- The U.S. dollar traded mixed against major currencies in late New York trading on Wednesday as optimism on U.S. economy was promoted by tax cut extension plan.

The dollar traded around 84 against the yen in late trading session, while the euro fluctuated against the dollar, and barely reached the level of 1.325.

The proposed extension of tax cuts plan by President Obama raised growth expectation for the U.S. economy, the 10-year U.S. Treasury yield went up to 3.25 percent, a level not seen since late June, which reflected risk-aversion was fading in the market, while investors were seeking higher-return investments.

For the first time in weeks, investors' attention was shifted to U.S. economic fundamentals from euro zone debt concerns, and the optimistic view on the U.S. economy would somewhat support the greenback, according to some analysts.

In late Wednesday trading, the dollar bought 84.07 Japanese yen, comparing with 83.46 late Tuesday, and the euro fell to 1.3261 dollars from 1.3284.

The British pound rose to 1.5802 dollars from 1.5769. The dollar fell from 0.9873 to 0.9868 against Swiss francs, but rose to 1.0105 Canadian dollars from 1.0094.