Will currency of euro take over dollar?

[Hina 11(MISS Einstein)]

Dollar Retreats on Euro Amid Rebound by Stocks


The euro and other currencies bounced back against the dollar after 30th March's safe-haven flows into the greenback, as stock markets rebounded and appetites for risk revived despite more gloomy economic developments.
With U.S. and many other global stock exchanges higher and more stable Tuesday, the dollar was deprived of safe-haven support and was hit by some quarter-end flows as traders cleared positions.
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Otherwise, U.S. and international economic reports provided no reason for traders to take on risk.


In such an environment, Tuesday's softer U.S. dollar profile can be taken only as an "incongruous reaction to data because of the way the risk environment is right now," said senior currency strategist David Watt of RBC Capital Markets in Toronto. "Any indicator of risk that you could look at is extremely elevated, and when that is true, markets can be somewhat irrational."

An exception to Tuesday's prevailing trend toward more tempered currency movements was the yen, which weakened to fresh three-week lows against the dollar and was knocked substantially lower against the euro.
Bloomberg News/Landov


The yen has been weakening since Japanese Prime Minister Taro Aso on Monday directed the government to deploy another big stimulus package for the nation's ailing economy, which analysts say could markedly increase the government's debt burden.

Senior market analyst Andrew Wilkinson of Interactive Brokers in London said Mr. Aso's depiction of his economy as being in a state of crisis "tallies well with the performance of the yen as the quarter and domestic fiscal year-end draws to a close."

He said the yen's poor performance of late amid sour Japanese economic data suggest the dollar within a few days could top 100 yen for the first time since early November.

By 31st Mach,2009,in New York, the dollar was at 98.74 yen from 97.25 late Monday, while the euro strengthened to 130.82 yen from 128.34 yen. The euro also moved to $1.3249 from $1.3197. The U.K. pound strengthened to $1.4324 from $1.4258. The dollar weakened to 1.1387 Swiss francs from 1.1486 francs.
by PAUL EVANS:

[azmimalik]

yes Euro and other currencies will take over dollar!haven't read your posted article yet but whenever i'll read it i'll try to post a logical answer other then mere gut feeling.