Dollar Firmer After Geithner Remarks

[tekisui]

Source: Reuters

TOKYO (Reuters) - The dollar rose against major currencies on Friday, benefiting after Treasury Secretary nominee Timothy Geithner said a strong U.S. currency was in the United State's interest.

The U.S. currency was also supported by safe-haven bids due to losses in Asian shares, with Tokyo's Nikkei share average falling more than 2.5 percent.

But gains in the dollar were seen capped following downbeat labor market data and weak housing figures.

"There is a move toward risk aversion against countries with fragile economies, notably Europe and the U.S.," said Toru Umemoto, chief FX strategist at Barclays Capital Japan.

He said the yen continued to benefit the most among major currencies partly because it has had relatively smaller exposure to financial trouble.

Geithner's comments on the dollar came on Thursday when he won the Senate Finance Committee's backing to head the U.S. Treasury.

Trade was subdued and investors were seen largely adjusting positions given few major economic events ahead of the weekend and Chinese New Year holidays early next week.

more: http://www.reuters.com/article/hotStocksNews/idUSTRE50E1PE20090123

[Generator]

1. I like my dollar firm with a little soy sauce

in HD.

[Deja Q]

2. Since Obama took the Oath, I've been feeling firmer ever since!

Of course, anything over 4 hours is subject to inspection at the ER...

:hide:

[tekisui]

3. We are all benefiting from his stimulus package.

:)

[Bonobo]

4. I'm going to Japan in a month. Please get better, Mr. Dollar!

[Selatius]

5. Mere words won't change the fact that the US is running epic deficits and is borrowing heavily.

That is the main reason the Dollar is so depreciated. You cannot flood the market with Treasury bonds to pay for stupidity and not expect negative consequences.