Posted October 31, 2011
Investors skeptic over debt crisis deal. Questions remain about strength.
The Monday currency trading session started with the US dollar falling to the lowest level it has been at since the early portion of September against the euro. This came in after a report indicated that Germany is willing to leverage the bailout fund for the European Union to the level of up to one trillion euros, equivalent to US $1.39 trillion. Additionally, the Japanese banks promised to intervene as the yen took to improve for the day against the US dollar, keeping the US dollar near record lows. The euro moved from US $1.3865 in North American trading at the end of the Friday session to US $1.3934 by the end of the Monday session. The US dollar index moved the currency from 76.404 on Friday to 76.082 by the end of Monday. The US dollar moved from Y 76.17 on Friday to Y 76.06.
The Tuesday session saw improvement in the US dollar with the US stock market weighing in heavily on the perceptions that investors are willing to take risks. Expectations were running high that during the Wednesday trading session, it was expected that a comprehensive response to the debt crisis plaguing the European Union was to be announced. This moved the US dollar index to 76.154 by the end of the North American trading session. The euro moved to trade at US $1.3921 for the day as well. Worry is still plaguing many of the investors who are unwilling to move into too much risk. The US dollar moved to trade at Y 75.92 for the day, down more so.
The Wednesday trading session saw the US dollar paring its gains against the European Union currency. This came after it set a fresh low against the yen during the day's trading. This happened as a few media reports came out prior to the end of the European Union's summit occurring during the day in Brussels. The euro moved to trade at US $1.3911, down for the day. The US dollar index moved to end the day at 76.207. The US dollar moved to trade at Y 76.19 for the day. At this point, the US dollar has fallen by 6.1 percent against the yen.
The Thursday session came with remarkable movement. The euro managed to jump during the day to the highest amount seen since March of 2009. It managed to reach as high as US $1.42 during the day, the highest it has been at since September. This came after the European Union leaders finally announced a plan that would help to curb Greek debt concerns and help to boost the euro zone bailout fund considerably. Though still controversial, the plan offered some relief to investors. The euro closed the day at US $1.3911 by the end of the North American session. The US dollar index moved the currency to 75.883 for the day. The US dollar moved to trade at Y 75.92 for the day.
The Friday session saw some of the euro's upward movement from Thursday fall back against the US dollar. This came as investors considered the plan closely. In addition, there was some worry that Asian investors would not get behind the plan, which provide a key indication of whether or not the euro would continue to improve. For the day, the euro moved to trade at US $1.4155 for the day. The US dollar index moved the currency to 75.063. The US dollar moved to trade at Y 75.77, to a record low.