Naharnet

Traders Rush to Dollar Haven Amid Turmoil

The U.S. dollar rose against the euro Thursday, as investors fled from the single European currency amid a widespread global market sell-off.

The euro fell to levels not seen against the dollar since January, fetching $1.3470 by 2200 GMT versus $1.3564 the day before, as fears grew of a global slowdown.

"Forex trading crowd sentiment has favored U.S. dollar gains against the euro and sterling for some time," said Christopher Vecchio, a currency analyst with DailyFX.

"But now with the move to safer assets rapidly accelerating, significant shifts suggest that the euro may continue to fall as the dollar rally continues across the board."

The European single currency struck a new 10-year low against the yen as investors sought the safe-haven Japanese currency.

By 2100 GMT, the euro had dived to 102.60 yen, levels not seen since June 2001.

The dollar fell to 76.20 yen from 76.48 yen.

The pound fell to $1.5343 from $1.5498 and the dollar rose to 0.9078 Swiss francs from 0.9000.

Source: Agence France Presse


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