Dollar mixed amid economic jitters
Typical safe haven currencies show strength as investors fret over the scope of the global flu outbreak. Mexican peso sinks against the dollar.
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NEW YORK (CNNMoney.com) -- The dollar rallied against the Mexican peso and was mixed against other major currencies Monday amid worries about the economic impact of a global swine flu outbreak.
Because Mexico appeared to be at the heart of the outbreak, that country's currency took a beating. The dollar surged 4.8% against the peso, buying 13.98 pesos, up from 13.34 late Friday. The dollar hit a high of 13.99 in the session.
The World Health Organization (WHO) said Monday that there were 73 confirmed cases of swine flu across the globe and declared a public health emergency. About 40 cases were identified in the United States.
Investors are concerned that the epidemic could slow the economic recovery, pushing investors to move funds into perceived safe havens, such as the dollar and the yen.
The greenback edged 0.5% lower against the Japanese yen, another major currency that typically rallies in times of economic uncertainty. The dollar bought ¥96.73, down from ¥97.17 late Friday.
In other currencies, the 16-nation euro traded at $1.3044, down 1.5% from Friday's close of $1.3242. The British pound also slipped against the dollar, trading at $1.4656, down 0.1% from $1.4675 late in the day Friday.
The dollar was also finding some support from weakness on Wall Street.
All three major stock market indexes ended lower Monday afternoon in a choppy session as investors weighed the flu outbreak against news of GM's restructuring and Chrysler's deal with its union.
The fate of the U.S. automakers has been under close watch lately, with the clock ticking for both.
Chrysler won key concessions in a tentative deal with the United Auto Workers, and General Motors (GM, Fortune 500) unveiled a restructuring proposal Monday as part of its effort to avoid bankruptcy. Chrysler still needs to reach two critical deals by Thursday to avoid bankruptcy.
Meanwhile, GM has until the end of May to reach deals with creditors and unions to cut costs or be forced into bankruptcy.
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