US Dollar Falls Steeply
On Monday, the US dollar fell to a five month low against the euro and the Australian dollar continued to climb during the day's session, to new record highs. Investors buying and selling the US dollar focused attention on the upcoming meeting of key monetary policy makers. The meetings will include the European Central Bank, the Bank of England and the Reserve Bank of Australia. The US Dollar started the week at 79.912 from the previous Friday's 75.857 in North American trading on the US Dollar Index. The euro positioned itself at $1.4219 which is down just slightly from the US $1.4229 it was at on Friday's session. The US dollar moved to Y 84.07 for the day against the yen, a move from Y 84.08 in the previous session.
The Tuesday currency session brought the decline in the US dollar against the euro. This came after the Federal Reserve's March meeting minutes showed that the central bank was considering an exit from its current, loose monetary policy. A week economic report also hurt the movements of the dollar during the day. The US Dollar Index moved the currency to 75.883 at the end of the trading day in New York, after hitting 76 during the session. The euro moved to US $1.4227, though it hit a low at US $1.4150 during the day. The US dollar moved up against the yen to Y 84.83 during the session.
During the Wednesday currency session, the US dollar continued to fall and managed to hit the January 2010 low against the euro during the session. However, the currency did climb to a six month high against the Japanese yen. Most believe the European Central Bank will be raising its target interest rate on Thursday at its meeting, which would mark the first time it would increase the rate since the 2008 move. The movement is in hopes of pushing off inflation risks. Against a basket of currencies, the US Dollar Index moved for the day to 75.535 at the end of the currency trading session in New York. The euro closed out the day at a high of US $1.4331, though it did move as high as US $1.4349 during the day's trading, which is the first time it has been that high since January 18, 2010. The US dollar rose against the yen during the session to Y 84.43, though it managed to hit a high of Y 85.52 during the session.
The US dollar managed rise during the Thursday currency session against the euro, after pushing the euro down from its high stance the day prior. This came after the European Central Bank President announced that policy makers had not made a decision on whether or not to increase the key lending rate beyond the initial increase put into play during the day's session. The euro fell to US $1.4311 during the day as a result. The US Dollar Index positioned the US currency at 75.553 by the end of trading in New York. The US dollar feel to Y 84.89.
The risk of a Washington shutdown scares investors pushing the US dollar even lower. The US Dollar Index showed the US dollar falling to 74.892 during the day, which marks the first time the index has positioned the dollar below 75 since prior to December of 2009. The euro moved up to US $1.4476 during the day, which allowed it to improve by 1.7 percent against the US dollar for the week. Against the yen, the US dollar was flat trading at Y 84.82 during the day, but posted a loss of .9 percent for the week.