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The Debt Crisis Swept Through &Nbsp In France; The US Dollar Index Rose 1.16% On Wednesday.

2011/8/11 10:40:00 48

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Wednesday, euro zone sovereignty

debt

The crisis spread to France, the day the market rumors that the country's AAA top credit rating may be downgraded; although the three major rating agencies issued a statement reiterating the decision on the credit rating of France, but the euro fell against the dollar, the dollar index rose 1.16% over the same period.

By the end of the New York foreign exchange market, the US dollar index, which tracks a total of six major currencies, closed at 74.76 points, up 1.16%.

The euro fell 0.19% against the dollar Wednesday, to $1.4185. In the early morning, the euro rose to $1.44 against the dollar.

MF global foreign exchange analyst Jessica Hoff Sen (Jessica Hoversen) pointed out that "French banks' stock price trend today is a factor that triggers the rise of the US dollar, but the overall background is the downturn in global growth and the continued proliferation of the euro zone sovereign debt crisis."

The Dow Jones Industrial Average fell 519.83 points on the day, or 4.62%, completely smoothing the previous trading day's gains.

There were rumors on Wednesday that France AAA

credit

The rating may be downgraded, triggering a sharp rise in the cost of French bond default guarantees.

Although the three rating agencies issued statements denying the market rumors and reiterated the top credit rating of France, and confirmed the stable rating outlook, the French stock market still fell completely, of which the decline in financial stocks was even more alarming.

Earlier Wednesday, French President Sarkozy announced the end of his vacation to return to Paris and convened an unplanned ministerial meeting. He also asked the president of the French central bank to attend the meeting to discuss how to deal with the current financial situation.

The US dollar fell to 0.63% against Japanese yen on Wednesday, closing at 76.81 yen.

US Treasury bonds

Rate of return

Wednesday continued Tuesday and the trend continued to decline. The Federal Reserve announced on the same day that it maintained ultra-low interest rates. At least until mid 2013, the commitment continued to push up the price of US Treasury bonds.

Brown brothers Harriman analyst in Wednesday's report pointed out that "from the perspective of foreign exchange market, the Fed's further easing monetary policy will have a stimulating effect on the US dollar in the medium term, but with the recent stock market persistent worries, the US dollar may still be dragged down by market sentiment."

In other currencies, the SNB announced on Wednesday that more measures would be taken to stop the further appreciation of the Swiss franc. The US dollar rebounded against the Swiss franc, but the market's risk aversion to the traditional security currency assets forced the Swiss Franc to continue to rise. The US dollar ended up 1.459% against the Swiss Franc and ended at 0.7295 Swiss francs. The Bank of England announced Wednesday that it lowered its growth forecast and inflation forecast, and the British pound fell 0.36% against the US dollar at 1.6161 US dollars.

Australian dollar has fallen against the US dollar for several consecutive days.

rebound

On Wednesday, it rose 0.88% to close at $1.0256, while the dollar fell 0.34% against Canadian dollar at 0.9894 Canadian dollars.