Daily Forex Commentary for March 31, 2009

March 31, 2009

Reemergence of Risk Aversion Drives U.S. Dollar Higher

The U.S. Dollar traded higher on Monday against most majors except the Japanese Yen as traders have renewed their interest in the Dollar as a safe haven currency.

Bearish news regarding U.S. automakers General Motors and Chrysler triggered profit-taking in stock markets around the world and encouraged investors to move funds into the safety of the low-yielding U.S. Dollar. Once again traders are looking for return of capital rather than return on capital.

Other issues that made …
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