Currency Market Weighs Economy

Posted June 14, 2011

US economic concerns worry investors. US Dollar Index seems to have higher increase overall.

 

 

Monday, June 6

During the Monday currency session, the US dollar improved on its gains from the previous week against the euro. That came after the chief Jean Claude Juncker, who is the head of the euro zone finance ministers, made comments regarding the believe that the currency was overvalued. He also noted that he believes the region needs a better exchange rate policy. For the day, the US dollar index moved the currency from 73.775 as of the end of day trading in North American trading on Friday night to 73.981 for the day at the close of trading on Monday. The euro traded at US $1.4577 at the end of the Monday session, after moving from US $1.4626 at the close of business on Friday. During the day, it rose as high as US $1.4658. The UK pound moved from US $1.6424 on Friday to US $1.6353 on Monday. The US dollar moved to Y 80.14 at the end of the Monday session, from Y 80.27 on Friday.

Tuesday, June 7

The Tuesday session saw the US dollar fall back during the day. This came as currency traders considered the comments made by Ben Bernanke, the US's Federal Reserve Chairmen. He discussed the current US economy and monetary policy considerations. This caused the US Dollar Index to move to 73.528 for the day. In his speech, he noted that the rate of recovery was frustratingly low. The euro moved to US $1.4687 though during the session it did hit US $1.4696 for the day. Also notable was the move of the yen, which moved to Y 80.05 during the day. The UK pound moved to US $1.6444 for the day. The Australian dollar fell against the US dollar to as low as US $1.0671 during the day but recovered to US $1.0717.

Wednesday, June 8

During the Wednesday session, the US dollar improved against the euro as well as many other currencies. This came after Bernanke's comments did not offer any sign that the quantitative easing was in the works. The US Dollar Index moved to 73.946 for the day as a result. Many traders moved to the US dollar as a measure of perceived safety. The US dollar moved to Y 79.95 for the day. The euro moved to US $1.4573 as well, it also fell against the Swiss franc by 0.8 percent for the day. The US dollar slipped to 0.1 percent against the franc.

Thursday, June 9

The euro continued its fall on Thursday moving lower against the US dollar as traders considered the comments made by the European Central Bank president, Jean Claude Trichet. He noted that there was an expectation of a July rate hike, and he hinted that there would be other increases in the rate would not be occurring anytime soon. As a result, the euro moved to US $1.4508 for the day. The US Dollar Index moved to 74.20 for the day. The UK pound moved to US $1.6368.

Friday, June 10

During the Friday trading session, the US dollar pushed on its gains. The euro fell back by as much as one percent as the European political struggles continued to weigh in. In addition, monetary officials did not see eye to eye on how to overcome the financial concerns still playing out in Greece. As a result, the euro moved to US $1.4354 for the day. The US Dollar Index moved to 74.801 for the day as well. The US dollar moved to Y 80.35.

 

 

 

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