Speculation focuses on safer currencies

The U.S. dollar was down on European markets Monday morning on concerns over global growth.

The dollar fell 0.6 cents to $1.2978 in relation to the euro. It was also down 0.6 cents against sterling, to $1.8987, and fell ¥0.2 to ¥107.49 in relation to the yen.

The yen was also shaky in light of the fact that Japan’s recovery depends on export-reliant companies, and so on global demand for those companies’ products.

The Swiss franc, on the other hand, was up on traditional feelings that it is a safe investment in uncertain times. It was up 0.8 centimes to SFr1.1922 as opposed to the U.S. dollar and ¥0.4 in relation to the yen, to ¥90.13.

In the view of some analysts, some of the trouble surrounding global currencies, and especially the U.S. dollar, has to do with China’s refusal to revalue the renminibi in the face of expectations from the U.S. that it do so. This in the face of this weekend’s G7 nations meeting, where the issue was brought up.

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