Greek Debt Still Dominates as Safe Haven Dollar Grows in Value

Posted October 02, 2011

Investors wait and worry about global economy. US dollar hits highs since beginning of the year.

 

 

Monday, September 19th

The Monday trading session started off with the US dollar paring its gains against the euro. The focus was on the dragging talks about what to do about Greek debt. Talks between the European Union, European Central Bank and the International Monetary Fund continued during the day but there was no word about a solution for the European Union's biggest financial risk factor. The US dollar index moved the currency from 76.614 at the close of business in North America on Friday to 77.089 by the end of Monday's session. The euro moved from US $1.3798 on Friday to US $1.3685 by the end of Monday's session. The Japanese yen moved the currency from Y 76.88 on Friday to Y 76.54 by the end of Monday's market movements. The UK pound moved from US $1.5790 on Friday to US $1.5706 on Monday.

Tuesday, Sept 20

The euro improves but just slightly during the Tuesday trading session. The euro moved up as the finance minister from Greece concluded a call with the three agencies but said they would continue. All eyes are focusing on what happens with the country's get problems, which could have significant impact financially for years to come. The euro moved to trade at US $1.3705 by the end of the Tuesday session. The US dollar index moved the current to 76.965 for the day. The US dollar moved to trade at Y 76.41 for the day. The UK pound moved to US $1.5727 by the end of the New York session.

Wednesday, Sept 21

The US dollar improved during the Wednesday session after the Federal Reserve announced it will swap shorter term Treasurys for securities that have a longer maturity on them. This pushed the US dollar higher than most of its major rivals including the euro. The US dollar index moved the currency to 77.64 by the end of the Tuesday session, which is the highest level it has been at since March 2011. The euro fell to trade at US $1.3618, which is the lowest point that the euro has been at against the US dollar since the end of February. The US dollar moved to trade at Y 76.66 for the day. The UK pound moved to trade at US $1.5528.

Thursday, September 22

The Thursday trading session saw the US dollar improving to the highest level it has been at since February. Weak data out of China and the euro zone caused the plunge along with the retreat of US equities. Investors moved far from the risky currency into a safer haven. The US dollar index moved to trade at 78.539 for the day. The euro moved to trade at US $1.3446 by the end of the session. The UK pound moved to US $1.5339. The US dollar did fall against the Japanese currency to trade at Y 76.23.

Friday September 23

The US dollar moved to the highest level it has been at since January by the end of the Friday session. This came after the Federal Reserve announced that there was a poor economic outlook for the country, still. This pushed investors out of the risky assets like the euro and into the stabilities in the US Treasury bonds and the US dollar. Risky assets, including stocks and commodities fell for the day as well. The US dollar index moved the currency to trade at 78.378 for the day. The euro moved to US $1.3493. The UK pound moved to trade at US $1.5441 while the US dollar moved to trade at Y 76.62.

 

 

 

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