The dollar and the yen advanced on Monday as concerns over the US auto sector helped stem the recent rally in risky assets.
The Obama administration rejected restructuring plans for General Motors and Chrysler. Meanwhile, news of more bank bail-outs in Spain and the UK undermined financial stocks.
Analysts said investors were also on the defensive ahead of the G20 meeting of world leaders, which is due to start in London on Thursday.
“Although we remain of the view that forces are growing that will seriously undermine the dollar in the longer term, it is clear that the greenback has yet to fully relinquish its status as haven currency of choice,” said Neil Mellor at Bank of New York Mellon. read more
The Obama administration rejected restructuring plans for General Motors and Chrysler. Meanwhile, news of more bank bail-outs in Spain and the UK undermined financial stocks.
Analysts said investors were also on the defensive ahead of the G20 meeting of world leaders, which is due to start in London on Thursday.
“Although we remain of the view that forces are growing that will seriously undermine the dollar in the longer term, it is clear that the greenback has yet to fully relinquish its status as haven currency of choice,” said Neil Mellor at Bank of New York Mellon. read more
