Posted September 25, 2010
That was the question on our minds as the dollar finished August on 1.0393 against the Swiss currency. First blood certainly went to the dollar as the rate on the currency converter on the 2nd August turned out to be 1.0449. But where would things go from there?
The answer was down initially, as the dollar fell back to 1.0371 the following day. This was clearly going to be a tussle through the month as a whole, so it would be interesting to see which currency came out on top by the time August was over.
A few more days of effort saw the US dollar rewarded however, as it finished that first week of trading on an exchange rate of 1.0496. Could it raise the bar to achieve still more in week two and beyond?
The 9th saw a disappointing rate to end the day with, as the dollar fell back to 1.0390. The Swiss franc seemed to have the best start to the week here, but it didn’t last long. Unbelievably the dollar ended up adding on a significant amount over the next twenty four hours, finishing on 1.0580 as a result. Could things get any better than this, or was the currency about to lose its momentum already?
The answer was that the momentum was indeed put into jeopardy, although perhaps not by as much as we may have thought. After a few ups and downs – although only small ones – the US dollar finished the week on an impressive 1.0538 against the Swiss franc.
However the following week was not as rosy. The dollar ended up finishing on Monday with a rate of 1.0413, and it wasn’t looking anywhere near as promising by the 19th when it reached a rate of 1.0385. There was just one day left of that week and as it turned out the Swiss franc would end up piling on the pressure. The US dollar closed on 1.0346 at this point, and we were now wondering which of the two currencies would have the better month when all was said and done.
A further clue came as the next week of trading got underway. This gave the US dollar a chance to fight back, but instead it finished on 1.0302. An exchange rate of 1.02 wasn’t far away, but we didn’t think it would be reached quite so soon. One day later and we were staring at a rate of 1.0263.
Clearly the momentum was with the Swiss franc now, and it pushed the dollar back down to 1.0228 the next day. A small reprieve was seen for the dollar when it achieved 1.0279 on the 30th, but then it lost its determination and closed out the month on the 31st with a rate of 1.0201.
It clearly wasn’t going to be a good time for the US dollar against the Swiss franc. But how much longer will it go on for, we wonder?