NEW YORK -- With equities and oil prices falling in tandem with a rebounding dollar Monday, global markets demonstrated that they have not yet broken free of the risk-conscious trading logic that first emerged during the financial crisis a year ago.
The trend suggested that despite clear signs of global economic recovery the dollar continues to be seen as a safe haven play, rallying when investors become risk averse, as they did Monday, and falling as they gather confidence, which is what had been happening for most of the past eight months.
It also underscores how difficult it is to stake a claim on future trends for the recovery. In the past trading sessions, one sector tended to lead while others lagged. The sense that the worst of the downturn was behind us boosted riskier assets, driving down the dollar.
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