Risk aversion increased

[Femi]

Dealer's comment at IFC Markets

The dollar extended gaions in the NY trading on Tuesday, getting support on risk aversion in the global market. The International rating company Fitch cut Greece's debt credibility from A- to BBB+ with a negative aspect that led to investors' flight from risk assets nominated in euro. Another rating company Moody's downgraded a few Dubai companies, reviving concerns about the problems that Dubai funds could bring more serious influence on international financial markets. On this background market players prefered to close risky positions and to flight to more secure assets, such as the US dollar and Japanese yen. Against the greenback the common European currency shrunk down in the New York trading under the level at 1.47, although on Wednesday the euro partially took back its lost position, a technical view for the euro remains negative. The most suffered the British pound, so a sizeable part of Dubai funds debts belongs to British banks. The Japanese yen gained against the dollar to the level at Y88, despite of the third quoter GDP figure 0.3% that was much worse than the forecast 0.7%, and of the negative growth on the back of Japan's growing deflation rate.