Posted December 04, 2012
Some weeks are made from pure hard work on the currency markets. This week would turn out to be just like that for the US dollar. Let’s see how things panned out.
So the US dollar began the week on 0.6275 against the British pound, but by the end of that first day it had lost ground, falling to 0.6247 in the process. The dollar started on 0.7746 against the Euro but soon lost ground there too, drifting back to 0.7713. The opening rate against the Hong Kong dollar was 7.7503 but this dropped as well to 7.7500.
More bad news befell the dollar today as far as the head to head with the pound was concerned. It lost more ground and slid back to 0.6234 as a result. There was a tiny degree of improvement against the Euro as it edged up to close out the day on 0.7715. There was good news against the Hong Kong dollar too, but it was so marginal that it only figured in the fifth and sixth decimal places.
There was a glimmer of hope that the dollar might perk up today and indeed it did, rising a little to 0.6259 in the process. And there was more good news against the Euro, as the dollar closed out the day on a healthier 0.7757. We also saw an improvement that was actually visible against the Hong Kong dollar, as its US counterpart pushed up to finish the day on 7.7502.
If we thought yesterday brought good news we were back to the bad news today. The dollar ended up stalling and falling back to 0.6237 by the close of play. After yesterday’s more promising news today went back to bad news again: the dollar dropped to 0.7695 against the Euro. Clearly there was a major battle on against the Hong Kong dollar as the US dollar dropped back again, this time finishing on 7.7500. Would this point to a bad end to the week? It certainly didn’t seem as if there would be a lot of good news to celebrate this time around.
There was a little better news today as the week ended, with the dollar rising to 0.6243 against the pound. But this was still worse than it had begun the week on. The same story played out against the Euro as the dollar crept up to finish on 0.7700. The final rate for the week was 7.7500 against the Hong Kong dollar, so while the US dollar had managed to achieve a little more than it had previously it was still struggling to really do much of note at all. This had been a tough week and it showed. Perhaps next week would pan out better for the dollar, because this one was better off forgotten in many respects.