The US dollar is slightly weaker on the foreign exchange markets today, as the decline in fears about the banking crisis has increased investor interest in riskier assets. The euro gained about 0.3 percent against the dollar to $1.0830 around 15:30 CET. Investors usually consider the dollar a safe haven in times of economic or political uncertainty.
What has eased concerns about the banking sector?
Concerns about the banking sector were eased by a deal under which US financial institution First Citizens will take over all deposits and loans of failed Silicon Valley Bank (SVB).
“Financial markets are now taking a slightly more risk-friendly stance,” said analyst Adam Cole of RBC Capital Markets. “Under these circumstances, the dollar usually heads lower,” he added.
Traditionally, investors also consider the Japanese yen a safe haven, but it strengthened today, unlike the US dollar. Analysts said this could be a result of Japanese companies remitting profits made abroad to Japan ahead of the end of the fiscal year.
How is the Japanese yen doing?
At around 15:30 CET, the dollar was losing about 0.6 percent against the yen to 130.80 yen. The euro was depreciating about 0.3 percent against the Japanese currency to 141.70 yen.
Source: the Czech Press Office