Dollar Up But By Less

Posted December 10, 2010

US dollar improves for fourth day. Worries about Europe continue to hold back euro.


US Dollar

During the Thursday currency trading session, the US dollar rose against, for the fourth day in a row. This comes after a number of concerns in the European Union continue to hold back investors plus additional information from the Treasury. The US dollar improved but pared some of those gains after the US Treasury department received significant demand for the auction of 30 year bonds. This helped to send yields lower and encouraged investors to turn to the higher risk currencies, though limitedly.

US dollar did improve during the early portion of the trading session after information out of the US showed that jobless claims fell in the last week. Still, there are concerns about the euro zone and that held back the investors during the early portion of the session. For the day, the US dollar moved from 79.985 as of the close of business in North America on Wednesday to 80.042 by the end of trading on Thursday, in the US dollar index.


As the US dollar’s constant rival, the euro also fluctuated during the trading day. It moved as low US $1.3164 during the trading session, but ended at US $1.3243 for the day. It was at US $1.3268 in end of the day trading in North America on Wednesday. 

Investors believe the euro will remain under pressure for some time as more problems become apparent in the euro zone, or even as euro zone leaders continue to make decisions that impact investors. There were rumors during the trading session that Italy could also be facing financial currencies. According to some reports, three of the large US rating agencies may be considering changing their outlook on Italy.

UK Pound

The UK pound moved from US $1.5809 in end of the day trading on Wednesday to US $1.5769 by the end of trading on Wednesday. This came after the Bank of England reported that it would hold steady to the current very low interest rate in place. It is currently set at 0.5 percent. It is unlikely as well to change its asset purchase program as some investors had hoped.


During the trading session, the US dollar moved from Y 84.05 as of late in the North American trading session on Wednesday. By the end of the trading session on Thursday, the US dollar moved to Y 83.71.