BS: Dollar Drops as Global Stock Rally Reduces Demand for Safety
By Catarina Saraiva
July 7 (Bloomberg) -- The dollar dropped against the New Zealand currency and Brazilian real as global stocks rallied on the outlook for U.S. retail, reducing safety demand.
The Canadian and Australian dollars advanced versus the greenback as evidence the world’s largest economy is recovering from recession boosted commodities.
“The dollar is trading with risk sentiment,” said John Doyle, a strategist in Washington at Tempus Consulting Inc., a currency trading firm. “Stocks are gaining. Many believe it’s a good buying opportunity.”
The dollar slid 0.7 percent to 69.89 U.S. cents versus the New Zealand currency at 10:58 a.m. in New York, from 69.39 yesterday. The U.S. currency depreciated 0.6 percent to 1.7693 Brazilian reais, from 1.7796.
The Standard & Poor’s 500 Index gained 1.5 percent after falling 5 percent last week. Crude oil for August delivery increased 2.5 percent to $73.76 a barrel after falling yesterday to its lowest level since June 8.
--With assistance from Anchalee Worrachate in London and Alex Kowalski in New York. Editors: Dennis Fitzgerald
To contact the reporter on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net.
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
