Posted July 24, 2011
Investors get some relief during midweek. However, debt concerns hold back the euro significantly all week.
During the Monday trading session, the euro moved to a record low against the Swiss franc. The US dollar managed gains, too. The euro fell to a seven week low against the US dollar during the session. It hit a new record low against hte franc because of the fears that the European debt crisis is likely to take over Italy as well. This sent the euro to move to US $1.4045 against the US dollar. That is a move from US $1.4247 in late day trading on Friday's session in North America. The euro moved to trade at Y 112.74 for the day, down from Y 114.90 at the end of the Friday trading session. It moved to 1.1741 Swiss franc for the day, which is a drop of 1.3 percent. The US dollar index moved the currency to 75.941 for the day.
During the Tuesday trading session, the euro fell to under US 1.40. This came as the credit rating agencies moved to lower the credit rating of Ireland. This pushed the US dollar even higher as investors turned to safety to protect investments during the trading session. The markets were volatile throughout the session. The euro moved to a US $1.3975 at the end of the trading session in New York. The US dollar index pushed the currency to 76.028 for the day. It was as high as 76.941 during the session. The euro moved to another low against the Swiss franc at 1.1611 francs, down 1.1 percent. The euro moved to trade at Y 111.92 during the session as well.
During the Wednesday trading session, the US dollar pushes lower. It feel by about one percent during the day against its competitors. This came after Ben Bernake, who is the country's Federal Reserve Chairman, suggested that the country may need another stimulus if any of the economic conditions fall farther. This helped to push the euro higher. The US dollar index moved to 75.213 by the end of the trading session in North America. The euro moved to US $1.414 by the end of the session. The US dollar moved to trade at Y 78.99 for the day. The euro moved to trade at Y 111.74 for the day as well.
The Thursday session saw more investors moving back into the perceived safety of the US dollar. It did fall back during the early portion of the day, especially as investors were warned of the United States' own sovereign debt concerns. However, the Fed dismissed the possibility of any immediate economic stimulus, which pushed investors back into the safety of the dollar. The US dollar index moved to 75.245 for the day. The euro moved to US $1.4139 for the day. The US dollar moved to trade at Y 79.15 for the day, and the euro traded at Y 111.90 for the day.
The US dollar fell against the euro during the Friday trading session against the euro. However, it still managed to gain for the week. There is no doubt that the concerns about the European's debt crisis held back the currency. However, there were the beginings of concerns regarding the US's debt as well. The euro moved to trade at US $1.4146 by the end of the day. The US dollar index stood at 75.148 by the end of the session as well. The euro moved to trade at Y 111.83 while the US dollar bought Y 79.07.