Posted November 26, 2010
We sometimes hear people referring to the mighty US dollar but it doesn’t always pan out that the American currency is quite as mighty as we think it is. For example it has been on the ropes recently against several currencies and that means it could have done badly against the Euro in October. It will certainly be worth taking a look to see whether the European single currency had what it takes to get the better rate on the currency converter.
The closing rate for September was 0.7327 for the US dollar against the Euro. It dropped to 0.7285 the next day before heading into the first weekend of the month. But would it carry on dropping once the first full week got underway?
The earliest sign on Monday night was good, with the US dollar claiming 0.7296 on the exchange rates. But by the time the two currencies had played around for a whole week it was clear which one had come out on top. The exchange rate had dipped back to 0.7207 so it was first blood to the Euro.
There was better news by the 12th of the month though, as the dollar regained a healthier rate and fixed itself at 0.7229 for the close of play. But once again the improvement was short lived as it fell to 0.7164 the following day and lower to 0.7097 by the end of the week.
The day of the 18th was a little more promising as the US dollar fought back against the Euro to finish on 0.7196. But it was becoming clear by this time that there were not going to be any major successes or changes throughout the month. Instead it would be left up to the little changes and alterations to tell the story of which currency – the US dollar or the Euro – would be slightly better off by the time the month was at an end.
Again the week ended on a lackluster 0.7176 for the US dollar and nothing seemed to make a difference – at least not for long. But it was almost as if the dollar knew it had just a few days left to make some kind of difference. We had but a week to go before October was at an end, and as a result it was possible to see some kind of change in the figures. The healthiest one for the final week was 0.7244 for the US dollar, but it didn’t occur on the last day of trading for the month.
Instead that honor was reserved for the final figure of 0.7216, meaning that what little movement there had been throughout the month went in favor of the Euro. It wasn’t the best time for the US dollar but it has been through rough times before. The big question is how long these tough times will last for this time. Could we see better results in the future for the US dollar?