Dollar Down Against Euro

Posted October 01, 2010

All eyes focus on the Fed’s next move. US dollar down against euro.

 

During the currency trading session on Wednesday, the US dollar fell against most of its major competitors. Investors continue to take on the riskier currencies in the hopes that the Federal Reserve in the United States will create some type of stimulus plan that keeps US dollars cheap. 

US Dollar

The US dollar is at its lowest level against the euro since April of this year. It has fallen below the US $1.36 mark, a psychological level for the currency investors. The US dollar has fallen throughout the week, and has declined as much as 7.5 percent from September 13th alone. Against the yen, the US dollar fell to Y 83.50 during the start of the week and has reached the lowest levels against the yen since the Japanese government pour some Y 2 trillion into the market on September 15th. The US dollar has also fallen against the Swiss franc, to the lowest levels it has reached against the franc since Marcy of 2008. 

Euro Zone

Investors are not forgetting, though, that the euro zone itself remains in a questionable state with pressures from the financial strength in the region. Portugal and Ireland continue to be the countries investors are concerned with. However, investors are optimistic since many of the programs of these countries have occurred in Greece earlier in the year, and Greece has managed to pull through. Investors have put aside the concerns about the euro zone financial strength and moved towards the perceived riskier currency of the euro.

The euro did move lower against the US dollar at the hands off signals coming from leaders in the euro zone. However, the European Central Bank will not set policies that are specific to those countries most vulnerable at this time. The central bank made comments that the decisions it makes, it makes for the 16 member bloc of countries as a whole, not individually for extreme circumstances.

By the Numbers

By the end of the trading day in New York, the euro moved from US $1.3590 as of Tuesday’s close to US $1.3643. The euro moved from Y 114.00 to Y 114.09. The US dollar moved from Y 83.89 to Y 83.62 for the day. The US dollar moved from CHF 0.9760 to CHF 0.9767 for the day. The UK pound moved from US $1.5802 to US $1.5791. The ICE Dollar Index moved the US dollar from 78.904 to 78.691.

 
 

Comment