Posted October 09, 2010
Investors pushed US dollar higher. Yen and Australian dollar strongest in last 15 years.
During the currency trading day on Thursday, the euro fell against the US dollar by the end of late day trading in New York. It was at US $1.3934 as of close of business on Wednesday and fell to US $1.3914 on Thursday. Recently, the US dollar had fallen to 15 year lows against the yen, and eight month lows against the euro, but things seemed reversed during the day's trading.
Some of this stems from the European Central Bank President Jean Claude Trichet who made comments hinting that the central bank is more likely to exit from its easy monetary policy. The bank had taken steps during the financial crisis to help encourage the economy. The eight month high of the euro was at US $1.4028. In September, the euro was up to US $1.3633. At that point, it capped its 7.4 percent monthly gains.
The ICE Dollar Index pushed the US dollar up from 77.397 as of late trading on Wednesday to 77.462 by the end of the day on Thursday. Many are speculating about what could occur in the Friday payrolls data release. It is believed by experts that the economy liked added some 85,000 private sector jobs, which could boost the currency reports. However, some investors believe that total employment could fall due to the government workers being released after the conclusion of the US Census.
The yen rose again against the US dollar during trading. The US dollar fell below the 82.85 level investors are watching carefully. It is possible that Japanese intervention could occur if the yen continues on its current rise against the US dollar. The US dollar was at Y 82.92 as of Wednesday and moved to Y 82.39 by the end of trading Thursday. This is the lowest it has been at since 1973, when data records began.
UK Pound Up
The UK pound moved up, topping US $1.60 during the day's trade. This comes after the Bank of England level the key lending rate unchanged.
The Australian dollar also improved during the day, hitting the highest levels it has been at in more than 20 years. This comes after a surprisingly strong jobs report out of the country. The Australian dollar moved to 99.17 before it edged back at 97.19. This is a rise of .5 percent.