Commodity Currencies Fall to US Dollar

Risk aversion rises in currency trading

Risk aversion is on the rise on the FX market today. Commodity currencies are falling to the US dollar as global equities plunge and investors and forex traders look for "safer" investments.

Commodity currencies are also suffering from the fact that as the global recession worsens, there is decreased demand for the resources seen in countries that represent commodity currencies.

The entire financial climate right now is one of concern for the world economy. As a result, many are unwilling to take risks on commodity currencies — or even on the commodities themselves. 

See Also

• Currencies and Forex Trading
  Currency trading on the FX market

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