Dollar rises amid euro zone funding problems

Posted On: February 27, 2012
The U.S. dollar rose against various currencies on February 27, as market participants responded to news that the G20 refused to provide more capital to the International Monetary Fund until the euro zone bolsters its own resources. Currency risk management motivated traders to seek out safe assets and push the greenback higher, MarketWatch reports.

The U.S. dollar rose against the euro, after the common currency rose to a three-month high against the greenback during the week that ended February 24, according to the media outlet.

The ICE dollar index, which compares price movements in the safe haven currency to six trading peers, was higher in morning trading than it was late in the previous day, the news source reports.

The currency also rose against the Japanese yen, before retreating, according to Reuters.

"Some retracement is expected, given that dollar/yen has rallied nearly 6.0 percent in the month of February, driven by a combination of factors that include central bank policy and weakened economic data," Eric Theoret, currency strategist at Scotiabank in Toronto, told the media outlet.

Traders have caused the dollar to rise by 5.7 percent against the yen during February, the news source reports. 

Category: Industry News

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