Forex: Concerns on Sovereign Credit

Sydney, Dec 10, 2009 AEST (ABN Newswire) - Wall Street closed higher in choppy trade overnight while the fears on sovereign credit problem faded. The upbeat wholesale inventory data also helped to boost the market.

The dollar weakened slightly from 5-week highs Wednesday as risk appetite returned. US dollar fell against yen but reversed some early losses against the euro in the session. Standard & Poor's Ratings Services revised its outlook on Spain to negative from stable because of lower expected gross domestic product growth.

Today the NZ dollar gained in early trade as New Zealand's central bank signalled that it could start raising interest rates as early as the second quarter of next year.

The Australian dollar opened marginally lower today as ongoing concerns about several governments debt burden. At 7am AEDT, the dollar was trading at US$0.9063/66, down from yesterday's close of US$0.9066/69. In recentrading, the local unit was trading at 61.7 euro cents, 55.9 pence and 79.9 yen.