The U.S. currency rebounded versus several currencies after bottoming at a six-week low versus the euro, as speculations that the CIT Group may file for bankruptcy boosted demand for safety.
The dollar climbed versus most of the currencies after two weeks of losses on a strong wave of risk appetite that pushed investors to high-yield currencies, damping demand for the relative safety of the greenback. Concerns that the CIT Group Inc. will file for bankruptcy reappeared today, spurring demand for safety, consequently favoring the dollar. The pound posted more significant losses against the greenback as a report indicated that the public deficit in Great Britain is still at the highest levels since it was started to be analyzed, in 1993.
GBP/USD traded at 1.6426 as of 19:49 after peaking at 1.6570 yesterday. EUR/USD traded at 1.4195 from 1.4275.
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