Risk appetite, deficit worries send dollar lower

NEW YORK, Dec 7 (BestGrowthStock) – U.S. dollar losses deepened on
Monday, with traders chalking up the currency’s broad decline
to a combination of firmer risk appetite, year-end positioning
and some concerns about strained U.S. finances.

The euro rose 1 percent to $1.3363 (EUR=: ) while higher oil
prices and China’s decision to hold off on interest rate hikes
to fight inflation boosted the Australian dollar 0.9 percent to
$0.9944 (AUD=D4: ). The dollar fell 0.4 percent to 83.59 yen
(JPY=: ).

Traders also said percolating worries about the U.S.
deficit following a deal to extend Bush-era tax cuts for all
earners was also weighing, pointing to the dollar’s 1.2 percent
decline to 0.9686 Swiss francs (CHF=: ), a typical safe haven.

U.S. Treasury debt yields began rising after the tax cut
deal was struck, with the benchmark 10-year note yield hitting
a six-month high, though key support levels have held on
Monday. Higher yields led to dollar gains last week, burnishing
its appeal relative to other currencies.
(Reporting by Steven C. Johnson; Editing by James Dalgleish)

Risk appetite, deficit worries send dollar lower