Ireland Concerns Less and G20 Results Reduce Worries
The US dollar lost some of its gains against the euro during the Friday trading session. The euro still gained for the day. Investors were focused mainly on the rumors about Ireland’s debt. Although officials denied it, many investors were concerned early in the session that the Ireland debt crisis would lead the country to request a bailout from the European Union.
Some analysts stated that a bailout package in the range of 80 billion euro was being readied for Ireland. However, the rumor was denied by the Irish finance minister. After the denial, the euro moved up for the day, where it continued to see positive gains after a week of being down against the US dollar.
The euro moved from US $1.3660 as of late in North American trading on Thursday to US $1.3696 by the end of trading on Friday. It was able to get as high as US $1.3777 early in the trading day. That came after the euro fell under US $1.36 during the session. The euro has gained 0.5 percent against the yen and the Swiss franc during the trading day as well. The euro gained as much as 0.1 percent against the UK pound as well.
Various European Union countries confirmed that the Irish debt holders would not have to accept write downs of debt if a bailout became necessary. That also helped to boost the euro during the trading session.
The movements with the euro was the major factor affecting the movement of the US dollar against many of its major currencies. The US Dollar Index moved the US dollar from 78.164 as of late in the North American trading day to 78.106 by the end of the Friday trading session. The US dollar moved from Y 82.45 on Thursday to Y 82.49 by the end of trading on Friday.
The UK pound moved from US $1.6111 to US $1.6143 by the end of trading on Friday.
Also making a difference in the trading session was the Group of 20 meeting, but only to a limited level. The meeting did call for the markets to set exchange rates. It also stated that adjustments for any level of imbalances should be made gradually.
The Australian dollar moved to 98.66 US cents during the trading day. This was a loss of 1.3 percent.