Majors Climb Against the USD as Dollar Index Reaches Fresh Yearly Low

The Dollar Index hit fresh lows for the year in early Asian trading, dropping to 78.132 and the lowest levels since mid-December. The AUD-USD traded to highs of 0.8393 and the highest levels since last September, while Kiwi traded to 0.6652 and the highest level since last October. USD-CAD fell to 1.0750 and the lowest levels since October. EUR-USD rallied to 1.4308 and a two-month high while GBP-USD rallied to 1.6776 and the highest levels since last October. USD-JPY, while pressured, remains in a familiar range consolidating in a tight 94.65-85 range. Expectations of a global recovery have fostered risk appetite for currencies other than the dollar as well as commodities. U.S. officials Geithner and Summers have been cautiously optimistic on the economy over the weekend, as has ex-Fed Greenspan though White House’s Romer is more cautious and Nobel prize-winning economist Stiglitz also warns that talk of a robust recovery is premature.