Dollar Settled as Risk Appetite Improves

The dollar settled in early European trade on Wednesday, after an improvement in risk appetite around the world pushed up risky currencies and sent the yen to a four-year low against the dollar overnight.

Most of the European stock indices rose, and the yield on US Treasury bonds for ten years rose to the highest level in five months in the evening, supported by optimism about the global economy and corporate profits.

The decline in demand for assets that cross safe havens of value to the rise of the dollar to its highest level in four years at 114,695 yen in the evening. the dollar had settled at 114,375 yen.

The dollar index settled at 93.820, recording a decline after rising to a one-year high of 94.563 last week, supported by expectations that the Federal Reserve (the US central bank) will tighten monetary policy at a faster than expected pace.

The Australian dollar rose 0.2% on the day to trade at $0.74875, after hitting its highest level since July evening.

The New Zealand dollar also rose 0.2% to $0.7169, after recording its highest level since June in the evening, and its rise by 1.4% since the beginning of the week.

The euro fell slightly during the day and was trading at $1.1625.

The Canadian dollar rose 0.1% to $1.235 ahead of Canadian inflation data later in the session.

The British pound fell 0.1% to 1.37775 dollars after data revealed that inflation in Britain unexpectedly slowed last month.