- White House Plans to Freeze Spending to Cut Deficit
- Week Ahead: Investors Go for Quality, Assess Recovery
- Hedge Fund Billionaire Paulson Reports New Citi Stake
- Cramer: 5 Earnings Reports to Watch Next Week
- Court Rejects 'Clawbacks' for Alleged Stanford Victims
- Cities With the Most Home Price Reductions
- Tax Credit Sparking First-Time Home Sales: Realtors
- Investors Cut Back US Stocks for Bigger Growth Abroad
- This Year's Biggest Thanksgiving Leftover: Cash
- Dollar is Not Plunging—So 'Calm Down': Market Strategist
- Strategists Say Markets Have More Upside — But How Much?
- Hirschhorn: Risk-Averse Traders
- Roginsky: A Funny Thing Happened on the Way to Financial Reform
- This Year's Biggest Thanksgiving Leftover: Cash
- TV Series Inks Unique Deal For Fight
- First Time Buyers Rescue Housing: Realtors
- Dollar General Trades Higher After Its IPO
- Fed Reform? Not So Fast.
MOST SHARED
- Today's Market Action
- Microsoft's Bill Gates Praises Apple's Steve Jobs For 'Saving the Company'
- Has Twitter's Finest Hours (Seconds) Come and Gone?
- Seeking Innovation in Health Care
- Low Interest Rate Investing
- CNBC TRANSCRIPT: Warren Buffett & Bill Gates - Keeping America Great
- Inside Wal-Mart's Acai Berry Juice Maker
- Week Ahead: Investors Go for Quality, Assess Recovery
- China's Role as Lender Alters Dynamics for United States
- Israel Going Green
Text Size 
The dollar rebounded from record lows versus the euro on Tuesday, supported by a sharp fall in crude oil prices and a rise in U.S. stocks.
 |
The euro [EUR-TN Loading... ()] traded down slightly after earlier rising to a record peak of $1.6037, according to Reuters Dealing. The dollar was down more than 1 percent against the yen [JPY-TN Loading... ()], but off session lows around 104.17 yen.
"The dollar was helped by sharply higher stocks and lower oil," said Ron Simpson, director of foreign exchange research at Action Economics in Tampa, Florida. "Those were factors in bringing some dollar short-covering to bear as people had been betting the dollar had more room to fall."
Crude for August delivery completed trading on the New York Mercantile Exchange down $6.44 at $138.74 a barrel. It was the commodity's biggest dollar drop in a single day on the Nymex since January 1991.
Earlier, the dollar fell to a record low against the euro as concern about the health of the U.S. financial sector continued to weigh on investor sentiment.
The dollar's slump came just two days after the U.S. government had tried to restore confidence with a rescue package for mortgage agencies Freddie Mac [FRE
Loading...
()
] and Fannie Mae [FNM
Loading...
()
] .
Initial optimism about the measures quickly faded as investors focused on the potential cost.
Shares of Fannie Mae and Freddie Mac dropped again on Tuesday due to concerns that their rescue plan might hurt the equity stakes of current shareholders.
The U.S. dollar held losses Tuesday as government data for June showed a larger-than-expected jump in producer prices and disappointing retail sales.
"The market is right now not really trading on fundamentals, it's very much trading in a panic state," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey.
"The dollar was taken to new all-time lows against the euro and dropped broadly against all other currencies."
Print
Email
- Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
- For the chief of cable company Comcast, growth has been about making deals – generally very large deals.
- Some companies may start using insurance to shift carbon risk from their balance sheets to maybe... yours?
- The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
- Switzerland's privacy watchdog is taking legal action to force Google to make changes to its Street View service.
- A wealthy, distracted Texas driver crashed his million-dollar Bugatti Veyron sports car into a salt marsh, say police.
Data is a real-time snapshot *Data is delayed at least 15 minutes