Turbulence in Debt Pushes Currency Markets

Posted September 12, 2011

Dollar improves. Safe haven status sought by investors.

 

 

Monday, September 5

The week's currency markets moved to the US dollar gaining as an initial onset. The reason, though, has less to do with the country's growth and economic condition as it does the safe haven status the US dollar often holds. Investors are worried about debt. The European equity markets continued to fall during the day as concern grew. The US Dollar Index moved the currency from 74.720 by the end of the trading day on Friday in North America and traded at 75.020 by the end of the session on Monday. The euro, meanwhile, took a hit moved to trade from US $1.4197 as of the close of business on Friday to US 41.4122 by the end of the Monday session. The UK pound moved to trade from US $1.6212 as of late Friday to trade at US $1.6122 by the end of Monday. Against the Yen, the US dollar moved from Y 76.72 on Friday to Y 76.85 on Monday.

Tuesday, September 6

The Tuesday session started with the US dollar improving gains for the day. This reversed the early in the day's movements after the pressure in the markets after the Swiss National Bank made a significant move for the day. It set a floor on the euro exchange rate against the country's currency. As such the euro fell to the lowest level it has been at since the middle of July at below US $1.40. The euro moved to trade at US 41.3983 by the end of the Tuesday trading session in North America. The US Dollar Index positioned the dollar at 76.993 for the day. The US dollar also gained against the Japanese yen, moving to Y 77.69 for the day.

Wednesday, September 7

The Wednesday session saw somewhat of a reversal with the US dollar weakening. The euro made for a temporary spike after the Germany top court rejected the calls it saw to block the euro zone bailout participation by the country. The euro remains higher than 1.20 francs, though, after the Swiss National Bank's movement to set a floor. The US Dollar Index moved the currency to 75.489 for the day. The euro moved to US $1.4093 for the day. The US dollar moved to Y 77.36 against the Japanese currency and to US $1.5975 against the UK pound.

Thursday, September 8

The Thursday session showed more of a push for the greenback, especially after the comments made by US Federal Reserve Chairman Ben Bernanke. The US dollar improved after the chairman said he was not worried about an increase in inflation in the US however he did not provide any type of steps the central bank would dtake to control it either. The euro moved to trade at US $1.3884 for the day. The US Dollar Index moved to 76.284 by the end of the session in North America. The UK pound moved to US $1.5965 by the close of business. The US dollar moved to Y 77.52.

Friday, September 9

The Friday session saw improvements for the US dollar with the euro hitting a six month low against it. The US Dollar Index hit its highest point since March. This comes after news out of the European Central Bank over further financial strife. The US Dollar Index moved the currency to 77.175 for the day. The euro moved to trade at US $1.3659 by the end of the session. The UK pound moved to US $1.5877 by the end of the session. Against the Japanese Yen, the US dollar hit Y 77.48 by the close of business.

 

 

 

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