Dollar slips to 2009 lows

The dollar slipped to new lows for the year as investors opted for international money transfers to other currencies.

As the dollar continued to drop, the euro hovered near highs for the year.

A move to riskier assets continued as investors speculated over the strength of the US economy and its move to recovery.

The dollar index, measured against a basket of six major currencies, fell to 76.29, a 0.3 percentage point drop, the Bloomberg news agency reports.

Reports signalling better than expected retail sales in the US helped to push sales of the currency, as traders believe the economy slowly turns to recovery.

A number of analysts believe the dollar could face downward pressure for a number of months, as a switch to global recovery begins to take place.

Traders also expressed the belief that the foreign exchange rate between the dollar and the yen may drop in the near future.

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Written by Neil Waterman