Mid-Day Report: Dollar Extends Rally on Weak Stocks

[Forex-Outlook]

Dollar and yen are generally higher today as European stocks weaken on concern that austerity measures in Europe might slow the continent's economic recovery. US stocks also open lower. Crude oil also drops sharply to as low as 72.72 while gold makes another record high 1249.7 on risk aversion. Meanwhile, dollar index rose to as high as 85.87 and is set to take on 86 level. Canadian dollar is so far the weakest currency today, weigh down by crude oil's fall. Nevertheless, it's still the biggest winner this week on speculation that BoC will hike rates in June.

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