Dollar Falls On Eurozone Optimism 



 The U.S. dollar declined against most major               currencies in Asian trading on Tuesday as traders sold safe havens and bet on risky currencies amid optimism European leaders are taking steps to resolve the debt     crisis.

German Chancellor Angela Merkel and French President Nicolas Sarkozy indicated in Berlin on Monday that they have made progress on an agreement to implement new budget rules for the euro zone. The leaders also called on Greece to complete its debt write-down with creditors as soon as possible.
The dollar that closed yesterday’s European session at 1.2738 against the euro fell further in the New York session and in Asian trading. The dollar is currently trading at a 4-day low of 1.2797 per euro, down over a percent from a fresh 16-month high of 1.2667 hit in early Asian trading on Monday. If the dollar weakens further, it may target 1.290.

The dollar also slipped to multi-day lows of 1.5487 against the pound and 0.9468 against the franc, compared to Monday’s European session closing values of 1.5439 and 0.9532, respectively. The next downside target level for the dollar is seen at 1.552 against the pound and 0.940 against the franc.
But the dollar-yen pair was trading around 76.80/90 level.

Investors now focus on a meeting between German chancellor Angela Merkel and the International Monetary Fund’s managing director Christine Lagarde later in the day in Berlin.
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Published: 2012-01-10 07:05:00 UTC+00 21 min. ago