Dollar falls against euro, yen as stocks rebound

NEW YORK: The dollar retreated against the euro and the yen on Wednesday as global stock markets rallied, eroding the appeal of the greenback as a safe haven.

The dollar was trading for $1.4096 against the euro around 2100 GMT, compared to $1.3992 at the same time on Tuesday. Europe's common currency had dropped as low as $1.3972 on Tuesday, its lowest level since mid-July.

Against the Japanese currency, the dollar slid to 77.26 yen from 77.68 the previous day.

"The greenback is lower and most global currencies are higher against today's calmer financial market backdrop," said Nick Bennenbroek, head of currency strategy at Wells Fargo.

Global stock markets slumped earlier this week, sending investors flocking to the dollar after Switzerland's central bank vowed to fight appreciation of the Swiss franc, a popular safe haven in recent months.

The dollar dropped to 0.8579 Swiss francs on Wednesday from 0.8618 the previous day.

It also weakened slightly against the British pound, trading at $1.5988, compared to $1.5945 late on Tuesday.

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Copyright AFP (Agence France-Presse), 2011