Posted August 28, 2011
Close range for currencies. Markets move with stocks up and down on fears.
With experts warning that the US dollar will be volatile prior to Bernanke's speech, many investors took to the high ground during the Monday trading day. The US dollar turned up slighting against most of its rivals as US stocks pared some of its gains. This pushed the currency traders to move to change their estimates. The focus is all on risk. As a result, the US dollar index moved the currency from 74.008 at the end of the Friday trading session in North American trading to 73.814 for the day by the end of the Monday session. The euro moved from US $1.4389 at the end of the week to US 41.4379 though it hit as high as US $1.44 during the session. The UK pound moved from US $1.6482 on Friday to US $1.6480 on Monday. The US dollar moved to Y 76.75 from a position of Y 76.39 on Friday.
The Tuesday trading session saw the US dollar fall against many of those same currencies. This comes after less than ideal data comes out of the US and improved information comes from Europe that helped to give the euro some support during the day. Many investors feel that the Federal Reserve in the US will take additional measures to push the US economy. As a result, the US dollar index moved to trade at 73.895 for the day. The euro moved to US $1.4427 for the day. The UK pound moved to US $1.6503. It also moved to trade at Y 76.41 during the day.
The US dollar gains against the euro on Wednesday, coming up after comments made by Merkel and after the move by Moody's credit rating agency to downgrade Japan. Better than expected economic data out of the US helped to reduce some of the economic fears investors have. This moved some investors towards more risk during the session. The US dollar index moved to trade the currency at 74.009 for the day. The euro moved to trade at US $1.4422 for the day. Against the UK pound, the US dollar moved to US $1.6384. Against the Japanese currency the use dollar moved to Y 77.01 for the day.
The Thursday session brought the dollar back up again, ahead of stocks. US stocks gave up much of their earlier in the session gains only to fall sharply again. The currency traders seem to be following the stock market as of late, and that means that investors moved to buy riskier currencies when better conditions seem to be present. All investors were waiting and wondering what teh Friday meeting with the United States Federal Reserve Chairman Ben Bernanke would bring. As such, the US dollar index moved to trade at 74.262 for the day. The euro moved to trade at US 41.4379 for the day. The UK pound moved to trade at US $1.62870. The US dollar also moved to Y 77.57 against the Japanese currency.
A boost in trading in the Asian market pushes the US dollar ahead. This came after the Japanese currency took to the losing ground after the party there moved to prepare for the incoming new prime minister. The US dollar moved up to Y 76.74 against the currency by the end of the trading session on Friday. The US dollar index moved to 73.836 for the day. The euro moved to trade at US $1.4479. And, the UK pound moved to trade at US $1.6345 for the day.