Dollar Index Back Over 80 After A Month

The dollar advanced Wednesday to trade back over the 80 mark for the first time in a month, with investors once again showing a preference for so-called safe-haven assets.

The ICE dollar index , which measures the greenback against a basket of six other currencies, reached 80.140 during Asian trading hours, up from 79.973 in late North American trade Tuesday.

The dollar index last traded over the 80-mark in late action exactly one month ago.

Wednesday’s advanced built on gains from Tuesday, when the dollar saw some buying as investors fretted about the world’s economic prospects after the International Monetary Fund downgraded its global growth estimates for 2012 and 2013. Read: Dollar rises as IMF sounds warning

The dollar rose as the euro fell, and Credit Agricole strategists said that waning confidence in the currency markets due to lack of resolution in the euro-zone crisis was a big factor behind the European currency’s recent weakness.

“Yesterday’s images of protests in Greece during Angela Merkel’s visit reminded markets that severe austerity measures imposed in Europe come at a large social cost, casting a dark shadow of doubt on a quick resolution in Europe,” they said.

The euro  slipped further on Wednesday in Asian trading hours, to $1.2846, from $1.2879 in late North American trading on Tuesday.

Similarly, the British pound fell to $1.5984 from $1.6001, while the Australian dollar  reached $1.0201, down slightly from $1.0207.

The dollar declined against the Japanese yen , however, buying ¥78.26, down from ¥78.29 late Tuesday. Investors also tend to regard the yen as a save-haven asset.

Marketwatch