Posted March 20, 2012
Some weeks are infinitely better than others, and the US dollar looked to benefit from a range of results this week. It did well against the Euro but would it be able to repeat this feat against other world currencies as well? Let’s find out.
If the US dollar was looking for a good start to the week against the Euro, it managed to do rather well. From a standing start of 0.7580 it managed to perk up to 0.7622 by the close of play on Monday. Another good result was noted against pound sterling, where the dollar added on just over half a cent. Things weren’t so good for its Canadian counterpart though, which was seen to drop against a number of other currencies. The main winner from this situation was really the US dollar, so this was more good news to start the week with for the US currency.
Could the US dollar get another good result against the Euro today? It wasn’t as good as the one we saw yesterday but it still managed to creep up a little to 0.7658. It also crept up a little against the pound, bringing it up to an even 0.6400 as a result. The better news today was that the US economy was looking more positive than it has in some time. This held good hopes for a recovery to continue into the future.
There was little change against the Euro for the dollar today, as it lost just 0.0003 against the currency. But would there be as little change elsewhere as the currency tried its best to stay on a positive footing? All the good work of the past couple days against the pound didn’t last long though, as it was undone by a closing rate of 0.6365. The Federal Reserve’s decision to back off from quantitative easing meant that a raft of Asian currencies took a hit on the markets too.
It was clear that the US dollar had seen the best of its performance for the week against the European single currency. It managed to add just 0.0003 back onto its exchange rate here, putting it back to where it had been on Tuesday. Another slight improvement took the dollar to a better position against the pound too. The Japanese yen did well today though, and this was borne out by news stories reporting that it was now back from a low point against the US dollar that had lasted almost a year.
The week closed out with a slight fall for the US dollar as far as the Euro was concerned. But it still managed to add on a total of 0.0044 for the week. However it wasn’t such a good story against the British pound, where despite better results earlier on the dollar ended up on 0.6324 – 0.0013 down on its opening rate. Data on inflation didn’t make things look too good for the dollar either, so it wasn’t the best finish at all. Elsewhere though, the Norwegian and Canadian currencies also fell, so it wasn’t a good end for a lot of currencies.