- Mortgage Applications Up as Rates Continue to Decrease
- Tiger Woods Admits 'Transgressions'; Issues Apology
- Geithner: There Must Be Derivatives Rules for All
- Wal-Mart Targets Video Games with Latest Price Cuts
- 'Black Swan' Shuns Public Life Because of Bernanke
- Dubai World To Meet with Creditors Next Week
- FHA to Toughen Mortgage Rules in Lenders Crackdown
- Blog: Will Whitacre Bring Better Results to GM?
- Geeks Replacing Swashbucklers on Wall Street
- Stock Picker: Increase Exposure to Health Care Insurers
- S&P Stocks Trading at New 52-Week Highs
- Whitacre Will Change GM, But Will He Bring Better Results?
- Chipmaker Sees Options Upside After a Strong Sector Report
- Treasury Assistance Comes at High Price For GM
- Unemployment to Peak at 10.5%: Moody's Economist
- 8 Stocks to Gain on Obama's Afghan Plan: Analysts
- BofA On Proposed Changes In The Housing Bailout Program
- The Future of The Media Landscape
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
- Will the Fed raise rates? Will the dollar continue its slide? CNBC experts weigh in on the year ahead.
- Dictionary.com says that of all words searched for in 2009, a synonym for greed was the top gainer.
- Heavily armed pirates in Somalia have set up a sort of stock exhange to fund their hijackings.
- A Singapore-based businessman aims to make money by helping the developing world with a major sanitation problem.
- Since its launch in 1998, Google has become a primary force on the Internet. How much do you know about the company?
- Some of the nation's top bartenders offer suggestions on what to serve at holiday celebrations this year.
Data is a real-time snapshot *Data is delayed at least 15 minutes