September 9, 2009
The dollar fell against most major currencies on Tuesday as rising stocks and higher gold prices reduced safety-haven demand for the greenback.
Finance ministers and central bank governors of Group of 20 (G20) pledged on Saturday to boost the global economic recovery and to plan an exit strategy from the extraordinary economic stimulus when time is mature to take actions. The commitment lifted market sentiment, driving European and U.S. stocks higher.
Gold price rose above 1000 dollars per ounce in London trading on Tuesday to its highest level since March 2008. Gold also breached the 1000 dollar mark in New York trading before fall back in late trading.
The U.S. currency was also hit by a United Nations report which called for new global currency to replace dollar. The UN Conference on Trade and Development (UNCTAD) said in the report that the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises.
Some countries, including China and Russia, have suggested replacing dollar with a new global reserve currency. But the UNCTAD report is the first time a major multinational institution has made such a proposal.
The euro bought 1.4490 dollars in late New York trading compared with 1.4337 dollars it bought late Monday. It rose above 1.45 dollars during the session, the highest level since this year. The pound rose to 1.6494 dollars from 1.6335 dollars.
The dollar rose to 1.0811 Canadian dollars from 1.0763 Canadian dollars, and fell to 1.0462 Swiss francs from 1.0597 Swiss francs. It fell to 92.27 Japanese yen from 92.96 Japanese yen.