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FOREX-Dollar gains, boosted by oil, stocks; yen falls

Wed Jul 23, 2008 9:31am EDT
 
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* Dollar gains broadly, risk appetite improves

* Oil prices support dollar

* Euro hits record high against yen (Recasts, adds comments, updates prices, changes byline, dateline, previous LONDON)

By Wanfeng Zhou

NEW YORK, July 23 (Reuters) - The dollar hit a one-month peak against the yen and a two-week high against the euro on Wednesday, getting support from a slide in oil prices and a recovery in risk appetite.

With oil more than $20 below this month's record peaks CLc1 and world stocks on a six-day winning streak for the first time in two months .MIWD00000PUS, the improved risk appetite also pushed the low-yielding, safe-haven yen to a record low against the euro as investors sought higher returns elsewhere.

"We're seeing a bit of a broad dollar rally against most of the G10 currencies this morning," said Dustin Reid, senior currency strategist at investment bank ABN Amro in Chicago.

"We're seeing, in general, some positive (corporate) earnings news as well as lower oil prices, which are both helping the dollar sentiment this morning across the board," he said. "There seems to be a decent amount of risk appetite out there across asset classes."

In early trading in New York, the dollar climbed to its highest level in a month at 107.92 yen <JPY=>, according to Reuters data, before easing back slightly to trade up 0.4 percent at 107.75 yen.  Continued...

 

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