Dollar firms vs euro as stocks, oil markets slide
Dollar gained against euro on Tuesday as investors flocked to the traditional safe-haven currency.
NEW YORK (AFP) - The dollar gained against the euro on Tuesday as investors flocked to the traditional safe-haven currency amid another day of turmoil on financial markets.
Another sharp fall in crude-oil prices roiled US and European stock markets, leaving the blue-chip Dow Jones Industrial Average down 0.7 percent after a nearly two percent drop on Monday.
The US bond market, considered a haven in times of uncertainty, rallied sharply as investors piled in, sending the yield on the closely watched 10-year Treasury bond down to 1.94 percent from 2.04 percent late Monday.
It was the first time the 10-year yield was below 2.0 percent since October.
The euro sank to $1.1892 in late trade, down from $1.1933 a day ago, staying in the range of nine-year lows.
"Tough sledding for markets continued Tuesday as oil fell below $50 and some worried that Greece may have one foot out of the eurozone," said Joe Manimbo of Western Union Business Solutions.
"Under such a risk-off backdrop, traditional safe harbors outperformed, boosting the price of US Treasurys, gold and the yen."
Manimbo warned of potential risks to the strong greenback, depending on the tone of the Federal Reserve s minutes of its last policy meeting, due for release Wednesday, and Friday s December jobs report.
