Is The US Dollar Feeling Safer At Last?

Another point worth noting is that the US dollar is the world’s foremost reserve currency.  This is quite a position to have, and it has been noted in the recent past that it could be in jeopardy.  Some have disagreed with this idea, but others have been concerned that it could indeed happen.

But it would seem that those times, and that speculation, could now be over.  A recent news story on the Bloomberg website would appear to indicate that the dollar is back in the driving seat.  This has coincided with the fact that more and more people believe the worst of the recession is over, although that does remain to be seen.  The story itself can be read here.

As you will see from the story, the Finance Minister in the Russian government has voiced his support for the US dollar.  And it is certainly interesting to see how things have been going between the US dollar and the Euro in recent weeks.  It has been something of an interesting ride.

Back on the 12th May, the US dollar was bagging 0.7308 Euro cents.  By the time that week came to an end, the exchange rate had gone up to 0.7397, giving us something to think about.  The dollar was very close to tipping over the 0.74 barrier, and indeed it managed to do that on the next Monday.  The closing exchange rate on that day was 0.7410, although it didn’t last long as it dropped back to 0.7346 the very next day.

This is where things started to slide for the dollar.  On the 20th the exchange rate dropped back to 0.7304; the following day saw an even lower rate of 0.7261; and the week finished on the 22nd with an exchange rate of 0.7157.

The following week was a little more interesting though.  After a slight drop on the Monday the dollar managed to creep back up and reach the heady heights of 0.7217 on the penultimate day of the week.  But unfortunately that was as good as it would get that week, as the Friday went in favor of the Euro.  By the time the markets closed for the week, the US dollar was standing at 0.7093.  That was the last exchange rate for the month of May, and it wasn’t as good as the dollar had probably hoped for.

It kicked off June with a figure of 0.7032 at closing time though, so there were clearly still more depths to plumb.  That first week actually saw very little movement overall, but what little there was did go in favor of the dollar.  The final rate for the US dollar that week was 0.7053.

But it was the second week in June that really grabbed the headlines.  There were some ups and downs that week for sure, but things were rather interesting because of it.

After finishing on 0.7053 the week before, the Monday finished in a rather better position on 0.7211.  It was unfortunate that the dollar wouldn’t be able to hang on to that, but it still had a good week overall when compared to where it had been before.

The next day saw an exchange rate of 0.7163, followed by 0.7091 the day after.  And following on from that there was some improvement again on Thursday, to 0.7158.  This was clearly a seesaw week, and with a closing figure of 0.7140 on Friday there was no doubt that there was some real activity going on here.

So it would appear that the US dollar had some strength to show once more.  The Russian finance minister certainly agrees, and if there was ever any doubt that the US dollar might be surpassed by some other currency, that has gone.  There is only one reserve currency in the world, and it doesn’t look as if it will be anything other than the US dollar for the foreseeable future.

It will be interesting to see how the next few weeks develop though with regard to the exchange rates.  Will the dollar improve still more, or will it go through a few uncertain weeks against the Euro anyway?  We must wait to find out.