Dollar Gains On Most Majors As Risk Appetite Wanes

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The dollar continued to firm up versus other major currencies on Monday, bouncing away from a yearly low amid concerns that the global economic recovery may hit a speed-bump.

Traders were moving away from higher-yielding currencies in anticipation of the G20 summit in Pittsburgh later in the week.

Reports citing early drafts of the G20 communique indicate that major economies are united in a wish to maintain accommodative measures for the time being, not wanting to snuff out expansion.

There was little first-tier economic data for traders to consider on Monday.

The US economy is on the road to recovery, economists for the Conference Board said Monday in a report showing that its leading economic indicators index increased for the fifth consecutive month in August.

Still, the pace of growth for the month was slightly slower than economists had been anticipating.

Ken Goldstein, economist at the Conference Board said, "The LEI has risen for five consecutive months and the coincident economic index has stopped falling. Taken together, this suggests that the recession is bottoming out."

The dollar gained a bit of ground versus the euro, rising to 1.4620 from last week's yearly low of 1.4766. Its been a brutal month for the dollar against higher-yielders as equities continued to rise around the world, fueling risk appetite.

The greenback hit a 3-week high versus the sterling, rising to 1.6133. A move to 1.6112 would take the dollar to its highest level since July.

Against the yen, the dollar rebounded to 92.50, moving away from last week's 7-month low of 90.11.

The dollar rose to C$1.0800 versus the petro-linked loonie as the price of oil slipped below $70 on demand concerns.

(Market News Provided by RTTNews)