Posted November 26, 2010
Euro falls during session. Investor worries continue to plague currency.
Investors turned to the US dollar during the Tuesday trading session. Those investors were seeking out the US dollar’s safer have status as compared to the risky currencies. This came after North Korea and South Korea exchanged military fire. Further concerns pushed the US dollar higher and the euro lower as turmoil in Ireland continued to brew.
The US Dollar Index moved the US dollar from 78.611 as of late in the day trading on Monday in North America to 79.716 by the close of trading on Tuesday.
Interestingly, there was a great deal of information to come out of the US during the day, though currency traders paid little attention to it. Data on existing home sales and a revised third quarter growth report were released. In addition, the release of the minutes of a recent Federal Reserve meeting were released. They showed the formal announcement of the bond buying program.
During the trading session, the euro turned to its lowest point in the last two months. This came after a speech by German Chancellor Angela Merkel indicated that the currency is facing an extraordinarily serious situation, referring to the risks in the Ireland and other euro zone country’s financial banking district.
The euro moved from US $1.3629 as of late Monday to US $1.3364 as of the end of business on Tuesday. The euro did manage to high US $1.3361 during the day’s trading which is the lowest it has been at since late September.
After a day when North Korea fired artillery at a South Korean island, in a dispute over a maritime boarder, and South Korea returned fire, the markets plunged. The South Korean won fell by 2.5 percent in trading against the US dollar during the session.
Also notable was the turn in the Japanese yen. Due to the country’s location near the Korean problems, the yen initially lost some ground during the early part of the session. However, it bounced back. The yen, like the US dollar, is often seen as a safe haven for those who are investing in the currency market. The yen improved against the US dollar during US trading. The US dollar moved from Y 83.26 as of late in the day on Monday in North America to Y 83.13 by the end of the Tuesday trading session.