US Dollar Down to Weekly One Percent Drop
During the Friday currency trading session, the US dollar continued its fall. On Friday, though, the US dollar fell sharply compared to other currencies. The euro, by default, improved significantly on the day, rising as high as US $1.34 during the day’s session. This is the first time since late in November that the euro has improved to that level.
The US dollar was held back mainly due to the poor jobs report out of the US. This pushed investors to other currencies and led them to believe that the Federal Reserve would have to expand its quantitative easing measures, which most currency pros believe will further cut into the value of the US dollar.
The jobs report out Friday was not as promising as investors had hoped. Late in the trading day, a report leaked from one of the larger news organizations in the United States indicated that Ben Bernanke, the Federal Reserve Chairman stated that he will not rule out expanding the Fed’s $600 billion bond purchase plan if needed. That pushed investors to sell the US dollar.
The US dollar index pushed the Us dollar down against its major currency competitors to move from 80.21 at the end of the trading session on Thursday to 79.377 by the end of the Friday session. This pushed the currency lower by one percent for the day.
The euro roses against the US dollar moved from US $1.3222 as of the end of trading on Thursday in the US to US $1.3411 by the end of the trading session on Friday. That is an increase of more than one percent for the currency. The euro spent most of the trading day closer to US $1.33.
While investors pushed to the euro during the day, there was still focus during the session on the European Union and whether the European Central Bank would push and expand measures to help back up and support the financial system in place in the euro zone.
During the trading session, the UK pound moved to US $1.5776 for the day, a gain of 1.2 percent against the US dollar.
The US dollar fell significantly against the Japanese yen during the day’s trading session. The US dollar moved from Y 83.87 on Thursday in North American trading to Y 82.53 by the end of the trading session on Friday.