Dollar Falls Against Major Currencies Amid Rising Risk Appetite

The dollar experienced a slight decline against most major currencies on Monday, July 13, 2009, following a surge in financial stocks, particularly those of Goldman Sachs and Bank of America, after Meredith Whitney's positive comments. Market optimism was fueled by investors' anticipation of governmental economic reports and quarterly results from major U.S. banks, including Citigroup, Goldman Sachs, JP Morgan & Chase, and Bank of America, as well as Intel and Johnson & Johnson's earnings reports due later in the week.

Key Takeaways:

• The dollar fell against major currencies, including the euro, pound, Canadian dollar, and Swiss franc, but rose against the Japanese yen.
• Financial stocks, such as Goldman Sachs and Bank of America, showed significant gains following Meredith Whitney's positive comments.
• Rising risk appetite in currency trading was influenced by positive economic data in the previous weeks, despite a worse-than-expected non-farm payroll report and consumer sentiment report.
• Investors are awaiting new economic data and profit results for trading clues, as the market assesses the pace of economic recovery.
• Notable stock movements included the euro purchasing 1.3977 dollars, up from 1.3947 dollars late Friday, and the pound buying 1.6211 dollars, up from 1.6192 dollars.
• Major U.S. banks, including Citigroup and JP Morgan & Chase, are set to release quarterly results later this week, which may influence market sentiment.
• The market is closely watching Intel and Johnson & Johnson's earnings reports, which could impact investor sentiment.

Statistics:

• The dollar fell to 1.1532 Canadian dollars from 1.1631 Canadian dollars.
• The dollar fell to 1.0831 Swiss francs from 1.0845 Swiss francs.
• The dollar rose to 92.82 Japanese yen from 92.34 Japanese yen.
• The euro purchased 1.3977 dollars in late New York trading, up from 1.3947 dollars.
• The pound bought 1.6211 dollars in late New York trading, up from 1.6192 dollars.

Sources:

• Xinhua via COMTEX, July 13, 2009