http://www.foxbusiness.com/story/markets/market-overview/global-markets-dollar-hits--low-aids-commodities-stocksDollar Hits '09 Low, Aids Commodities, Stocks
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Reuters
LONDON-- The dollar fell to a 2009 low on Friday as fears intensified that the United States could lose its triple-A rating, supporting dollar-priced commodities and boosting resource related shares.
The dollar's latest decline started when ratings agency Standard & Poor's cut its ratings outlook on Britain to negative from stable, stoking fears other AAA-rated countries which are running huge debt levels could share a similar fate.
Moody's Investor Service said on Thursday it was comfortable with its triple-A sovereign rating on the United States but that it was not guaranteed forever.
"The main issues are related to yesterday's movement on fears that the U.S. might lose its triple-A rating," said Roberto Mialich, FX strategist at Unicredit in Milan.
"This exacerbated the dollar's losses over the last few days ... (and) for the time being it's hard to imagine a sharp reversal of the dollar's trend."
The dollar index, which measures the currency's strength against major trading partners, fell 0.4% to its lowest since late December.
The index is on track for its biggest weekly drop in two months, when the Federal Reserve launched its large-scale purchases of U.S. Treasuries in late March.
Minutes of the Fed's April meeting, published this week, showed it considered buying more securities to spur recovery, a move which would inject more dollars into the market.
The FTSEurofirst 300 index reversed early losses to stand up 0.4% with mining shares garnering support from rises in metal prices. Copper and steel material zinc rose around 3-4%, helped by a weaker dollar.
U.S. crude oil rose 0.8% to $61.54 a barrel, close to the previous day's six-month high above $62.
MSCI world equity index was up 0.6%, off its six-month peak set this week. Emerging stocks rose 0.4%. U.S. stock futures were pointing to a firmer open on Wall Street later.
June Bund futures fell 79 ticks.
Topic: U.S. dollar hits 2009 low (Read 670 times)