Posted September 25, 2010
The euro falls against US dollar and yen. European Union economic concerns weigh in.
During the currency trading session on Thursday, the euro came off its highs seen throughout the week and feel against both the US dollar and the yen. Investors are concerned, once again, about the European Union’s economic health.
During the day, the euro fell from a higher earlier in the week of US $1.3441 to close to US $1.33. The movement of the euro was due to the economic news that came out of the euro zone. Germany, among other countries in the euro zone, weakened during the month of September. In addition, news out of Portugal was also negative. Within the country’s government, the opposition party refused to provide any help in passing a key law aimed at tightening the budget. Also, the Ireland government provided information that the country’s economy shrank by 1.2 percent in the second quarter, something that was unexpected for investors and for the country’s economic advisors.
During the currency trading day, the US dollar did fall against the Swiss franc. The euro zone’s safety currency moved the US dollar to the lowest level it has been at since March of 2008.
Also moving against the US dollar was the UK pound. The UK pound improved by 0.2 percent on the day against the US dollar. This comes as investors ponder the potential that the US Federal Reserve could push another round of asset purchases. This led investors to believe that the Bank of England could also do this to help stimulate the economy and improve the currency market.
The US dollar also fell against the yen. A meeting scheduled late in the day between the Prime Minister of Japan and the US President was schedule and was expected to provide some insight on the country’s intervention in the currency markets last week. On Thursday, the Asian markets were closed for the day.
By the Numbers
By the end of the trading day on Thursday, the euro moved from US $1.3394 as of Wednesday evening to US $1.2217. The euro moved from Y 113.22 to Y 112.32. The US dollar moved from Y 84.54 to Y 84.34 for the day. The US dollar moved from CHF .9864 to CHF .9856. It fell as low as CHF .9805 during the trading day. The UK pound moved from US $1.5669 to US $1.5683. The ICE Dollar Index moved the US dollar from 79.812 to 80.099.