On Monday morning in New York the dollar recovered some of its earlier losses as investors continue to fret over Dubai’s debt crisis despite of the United Arab Emirates’ move of providing funds to local banks.

Safe-haven buying supports Greenback

On the day the U.S. currency remains down against most major rivals, while safe-haven buying has once again provided support to the greenback.

As weaker equity prices tend to erode demand for riskier assets, including the euro and other higher-yielding currencies, there are possibilities that the greenback will take further cues from U.S. stocks.

Major Currencies

According to EBS via CQG, in Monday morning trading, the euro was trading at $1.5010, as compared to $1.4955 late Friday.

The dollar was trading at Y86.46, from Y86.75, while the euro was at Y129.80, from Y129.71. The U.K. pound has been recorded at $1.6470, from $1.6487. The dollar was at CHF1.0037, from CHF1.0064.

Dollar Index

The Dollar Index, was at 74.774 from 75.034. This index tracks the greenback against a trade-weighted basket of six currencies.

Dollar against Yen

After the statement by Japanese Strategy Minister Naoto Kan in which he has said that the government had agreed to measures to stop the yen’s rise, the dollar recovered some of its earlier losses against the yen. The measures that would be taken were mot specified by Kan.

During Asian trading the greenback had fallen as far as Y85.96.

Canadian dollar

On Monday morning the Canadian dollar is modestly higher, that reflects the general, moderate retreat by the U.S. dollar. The U.S. dollar is trading at C$1.0598 from C$1.0612 late Friday.

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