Dollar Climbs Against Foriegn Debt

Posted by Admin | February 8th, 2010

As debt worldwide has continued to climb, it seems that the dollar has made significant gains against other nation’s currencies. The debt crisis in Europe includes Greece’s national bankruptcy and news that Portugal and Spain might follow in their wake.

The dollar index, which tracks the greenback against a trade-weighted basket of six major currencies, rose to 80.517 by the late afternoon in Tokyo from 80.460 in North American trading late Friday.

During Friday’s session, the dollar index touched 80.683, the highest level on a closing basis since July as investors looked to move assets form equities and riskier assets to relatively safer territory in the wake of a drip in U.S. nonfarm payrolls for January.

The insecurity about European debt played out on Asian markets, but effected the western currencies most directly.