U.S. Dollar Struggles in Forex Trading

The U.S. dollar is struggling mightily in forex trading on the currency market this morning. A number of factors have combined to send the greenback down in currency trading, especially against the euro and the sterling.

GFT's Boris Schlossberg offers some insight in FX360 on the drop by the greenback in currency trading:

No love for the dollar in the currency market tonight as the greenback was gang tackled on all sides, pushed lower by budding risk appetite, better economic data out of Europe and Australia and a United Nations report that called for a reduction in the dollar’s prominence as an instrument of global trade. The UN report – the first multinational statement on the issue – argued that dollar’s status as the world’s reserve currency should be subject to reconsideration in light of the major imbalances in global trade that have produced the current financial crisis.

This whole thing appears to be changing the way financial markets are working right now. Or at least enhancing the way they normally work. The comments, and the risk appetite (in addition to being a safe haven currency, gold is also hedge against inflation), have sent gold up above $1,000 per ounce, and has many talking about what could be used as a new global reserve currency.

Are the dollar's days numbered?