Dollar higher as risk returns

THE dollar was slightly higher today as investor appetite for risk recovered after being shaken by the political upheaval in Egypt.

THE dollar was slightly higher today as investor appetite for risk recovered after being shaken by the political upheaval in Egypt.

At 5pm (AEDT), the local unit was trading at 99.47 US cents, up from 99.01 cents on Friday.

Since 7am (AEDT), the dollar traded between 98.68 US cents and 99.47 cents.

CMC Markets foreign exchange dealer Tim Waterer said the local unit recovered some of its losses made on Friday as risk appetite increased during the local trading day.

"There was a bit of a better sentiment in Asian trade on equity and foreign exchange markets," he said.

"The Aussie followed some currencies that showed progress, like the Euro."

Mr Waterer said the unit sold off on Friday night as news of worsening riots in Egypt that, in turn, weakened risk appetite.

"These things can be hard to gauge when you're talking about geo-political tensions," he said.

"When you have talk of riots in Egypt and the like, markets use it as a reason (to sell).

"That's how our market started this morning."

Egyptians first took to the streets on January 25 to protest the 29-year-old government of Hosni Mubarak. Protesters cited poor living conditions, low wages and police brutality as reasons for the protests.

At 5pm (AEDT), the dollar was at 81.50 Japanese yen, down from Friday's close of 81.83, and at 73.06 euro cents, up from its previous close of 72.22.

The euro finished at 1.3615 US dollars, down from 1.3709 US dollars, and at 111.54 yen, down from its previous close of 113.31 yen.

The US dollar was at 81.93 Japanese yen, down from 82.65 yen on Friday.