Investors See Haven In Dollars
The dollar rose against most major currencies on Wednesday, hitting session highs on news that Chinas paramount leader Deng Xiaoping had died.
Investors bought dollars, traditionally a safe haven in times of political turmoil, as rumours began to swirl in the currency market that the ailing 92-year-old Deng had died.
The dollar spiked to a session high of 1.7005 German marks but quickly returned to its previous trading level before Chinas Xinhua news agency stamped the rumours official. The agency reported that Deng died late on Wednesday of complications from Parkinsons disease and a lung infection.
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Meanwhile, the dollar inched steadily higher against the Japanese yen, closing near its session high of 124.48 yen.
They were buying dollars and dollar/mark popped up past a resistance level at 1.70 marks, but it has come off since,