In currency trading on Tuesday, the currency investors turned once again to the United States dollar as the euro posed too much of a risk for traders. Throughout the day, the euro fell behind the US dollar.

Euro And Debt Matters

The largest problem associated with the currency market on Tuesday was the pull back of the euro for yet another day, mainly associated with the lingering worry about Greece’s debt problems. In addition to that, many believe that there are broader problems associated with the charges brought against Goldman Sachs in the United States.

Since the euro is seen as a riskier type of investment, investors headed to higher water through the US dollar. Investors and economists believe that the drop in the euro and the gain in the US dollar is a signal that many investors are pulling back or stepping away from those more riskier assets for the time being, and turning to the dollar as a safer place to be until the fires cool.

By The Numbers

In trading on Tuesday, the euro moved from US $1.3506 on late Friday to US $1.3469 in trading today. In addition, the euro moved from Y 123.66 to Y 124.42, as the yen is also considered a safer currency over the euro and other markets. The US dollar moved from Y 92.15 to Y92.38 in trading. The UK pound moved from US $1.5393 to US $1.5316, also a significant fall for the day. In the ICE Dollar Index, the index stood at 81.015 in trading which is up from 80.787 in yesterday’s trading. The ICE Dollar Index measures the US dollar against several trade weighted currencies.

Risk Aversion

The main focal point for the market at this point will continue to be the risk aversions investors are looking to turn to. Both the implications of broader and sweeping changes in the way that the United States monitors and limits investments through the Goldman Sachs charges and through the concerns over Greece’s debt, it is likely to control the market going forward for some time, investors believe.

No new news was available on Tuesday about the Greek debt concerns mainly because the meeting in which euro zone leaders were scheduled to meet to discuss the problem had to be pushed back until Wednesday due to a lack of transportation to and from the meeting site due to the large cloud of ash.

Canadian and Australian Dollars

In other news in the currency market, the Australian and the Canadian dollars fell for the day as well, mostly due to risk tones in the trader’s movements. Both of these commodity based currencies are very much linked to the global growth. The Bank of Canada is also likely to announce no new rate change in its meeting, though it may give some indication that the national bank is likely to begin to change monetary policy in the near future.