Dollar dips on Friday as investors opt for risks

Investors buying riskier assets following rumours of the beginning of an economic recovery, caused the dollar to drop in value today.

Reports suggest that improved corporate earnings and US unemployment figures have encouraged demand for stocks and higher-risk products, rather than the safer dollar.

Speaking to Reuters Tsutomu Soma, senior manager of foreign securities at Okasan Securities, said: "Investors who trimmed risky positions following a sharp fall in Shanghai shares are taking risks again."

Compared to Thursday's end of day currency exchange figures, the pound and the euro have both risen, while the dollar has slipped.

Friday's dollar index, a gauge of the currency's performance lost 0.3 per cent, falling to 79.024, reports the news agency.

The drop brings the figure close to Tuesday's seven-month low of 78.315.

According to the Associated Press, the euro hit its highest value for the year so far on Tuesday at $1.4303.

Written by John Mills.