The dollar stabilised on Monday after tumbling to a 10week low in the wake of Joe Bidens election as U.S. president with eurodollar the most traded currency pair in the world holding below 1.19 and the Japanese yen remaining close to an eight month high.
Scandinavian currencies and the Australian dollar all very sensitive to international trade developments and investors risk appetite were stronger.
The Chinese yuan was the biggest mover, having struck a 28month peak of 6.5501, and last trading up 0.6 at 6.5545.
The Norwegian crown was not far behind, rising by 0.5 against the dollar to 9.1135, after hitting a sevenweek high of 9.1020. The Swedish crown was also up by 0.4 at 8.6160, after reaching a 10week high of 8.6100 before.
Its classic risk preference, riskon, higher asset prices across the board stocks, commodities and its going to the foreign exchange market, said Neil Jones, European head of hedge fund sales at Mizuho.
The U.S. dollar, as one would expect, is a safehaven currency and still the world leader in terms of outperformance in times of risk aversion and so one would expect it to be on the backfoot in times of risk preference, Jones said.
The market may be a little reluctant to take euro higher, he added.
The Aussie dollar rose 0.4 at 0.7286 versus its U.S. counterpart, having hit earlier 0.7301, its highest since Sept. 21.
The euro was last trading at 1.1884, flat on the day, after rising to a twomonth high of 1.1899 in the Asian session….