Two Dollars Go Head To Head To See Out 2010
Posted January 14, 2011
When we mention two dollars, we could be talking about several different currencies. But this time we are referring to the US dollar and the Hong Kong dollar, to see which of them was in the stronger position against the other when 2010 came to an end.
As November finished up neatly at the end of the month, the US dollar was claiming a rate of 7.7688 against its Hong Kong counterpart. But as we readily know, this doesn’t mean the currencies will be in anything like the same position when the month comes to an end. As the first few days of the first week in December played out, there was very little difference in the exchange rates. The US dollar did drop back slightly though, carving out a rate of 7.7643 for itself.
Towards the second half of the following week it looked to be the US dollar that was in control. It managed to climb up to 7.7694 and this looked to be a much better position for the currency. But there was still one day to go until the weekend, and by the time it arrived, it managed to make another leap to 7.7744. So it could be a good time for the US dollar overall in December. However we have a long way to go yet.
The following week saw very little difference in the various exchange rates that were posted by the end of each day. But once again the final result went to the US dollar each time, as it succeeded in making it to a better rate and a final figure of 7.7770 by the close of the week. Did this mean the US dollar would get the best rate for the month as a whole, or did the Hong Kong dollar have something else up its sleeve to wow us with at the last minute? If it did it was certainly leaving it late to do anything about it.
Sometimes it can be fascinating to see a particular currency doing well, and then moving ahead to consolidate its good rates at the end of the next week. This is exactly what happened to the US dollar when it continued to push against the Hong Kong dollar at the end of Christmas Eve, when everyone quit for the seasonal vacation. By this time it had managed to push up to 7.7802, so it certainly gave us pause for thought over the break.
Of course we had a few days left to trade with until the year itself was over, and the US dollar didn’t seem eager to let them go easily either. On the 30th December it finished the day on 7.7823, but unfortunately it did let the reins slip a little when New Year’s Eve came to a close on the markets. Its year ending rate was 7.7724, which was still better than it had started the month with at least.