Near 2 Week High For US Dollar

Added: December 20, 2010

The US Dollar improves to two week high against euro. Swiss franc hits record level.

US Dollar

During the currency trading session on Monday, the US dollar improved against the euro. It moved to the highest level the currency has been at in two weeks against the euro zone currency. This comes after the European Central Bank released information that showed a sharp reduction in the purchases of European government bonds in the latest release of data.

The US dollar index showed the US dollar moved from 80.402 as of the reports out at the end of trading on Friday in North America to 80.611 as of the end of the session on Monday.

Euro

Against the euro, the dollar moved from US $1.3173 as of the end of trading in North America on Friday to US $1.3123 by the end of the trading session on Monday. The euro fell as low as US $1.3094 during the session. That marks the lowest level the currency has been at since the beginning of December. Many investors are concerned over the lack of implementation of any plans by the central leaders to help with the euro zone debt. Moody's Investors Services downgrading of Ireland's credit rating also is hurting the currency.

Swiss Franc

The Swiss franc was also a prominent role player in the current trading session on Monday. It pressed to an all time high against the euro in particular. This came after various currency investors showed their disappointment in the lack of better action taken by the European Central policy makers to handle the euro zone's current financial concerns and debt problems. European sovereign debt continues to weigh in on currency investors. The euro fell to 1.2332 francs. That is a loss of .8 percent for the trading session.

Yen

Against the Japanese yen, the US dollar moved from Y 83.30 as of the close of business on Friday to Y 83.83 as of the end of business in North American trading on Monday. In comparison to the yen, the US dollar is more sensitive to the movements within the US Treasury arena, especially in the area of yields. On Monday, yields fell again. This makes the US dollar less attractive in comparison to the yen.

UK Pound

During the Monday trading session, the UK pound fell by as much as 0.1 percent for the day. It was buying US $1.5517 by the end of the trading session on Monday in North America.

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No News Good News for Euro

Posted by John Sparks at Dec 31, 2010 03:05 AM

The euro has fought a tough fight this year, and it’s come down to this – no news is good news for this currency. With very little bad news about the debt crisis over the last couple of weeks, the euro has been helped. But the debt crisis is far from over as was seen with Portugal’s downgrade. Now France is in danger of the same fate. If that were to happen you can expect the euro to plunge. The problem France has is excessive bank exposure to the debt of other countries. It is too bad too since France has such a stable economy and has been one of the quietest countries in the EU during the recession. That is a reflection of its stability. But you need to watch for further downgrades in the EU because they send currencies down fast and hard.