Currency market in risk aversion mode

The currency market is in risk aversion mode, sending the U.S. dollar higher in forex trading this morning. The greenback is up against the sterling and the euro in forex trading, as well as against the Japanese yen.

Yesterday, risk aversion settled in big as the U.S. stock market joined a global equity rout. Today, concerns about the U.S. economy, the euro zone economy and the fact that China is putting a lid on growth, are affecting investors. Risk aversion is high, and that is prompting gains by the U.S. dollar.

The greenback is being used as a safe haven as uncertain investors favor capital preservation to the risk of higher returns on the currency market.

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