Dollar Index Falls on Increased Economic Optimism

Dollar Index Falls on Increased Economic Optimism

http://www.reuters.com/article/usDollarRpt/idUSL146503220090601

The dollar has declined sharply against a number of other currencies and the euro as the growing optimism about an economic recovery in the near future boosted the value of riskier assets. Continued signals from across the globe that the economic situation is improving have dented the dollar sentiment. The latest signals have come from China which reported that its manufacturing segment has continued to expand albeit modestly. The news that automobile giant General Motors is likely to seek chapter 11 bankruptcy protection led to a risk rally which led to a sharp fall in the US dollar. Investors are relieved that the uncertainty related to General Motors’ future has been reduced. On Monday at 0950 GMT, the DXY fell by 0.8 percent, down to 78.634.