Posted August 23, 2011
US dollar down for week. No growth a big concern in the markets.
The Monday session saw the US dollar fall on stock gains. The US dollar fell against both the euro and most other major currencies as the benchmark indexes of the stock market began to rise. They gained more than one percent, taking back some of the losses from the previous week. It seemed traders were more comfortable during the day and taking on more risk as a result. The US dollar index moved to trade at 73.836 during the day, which is compared to 74.594 which it was at the close of business on Friday in North American trading. The euro moved to US $1.4453 for the day, after being age US $1.4251 late on Friday. The US dollar moved to 78.46 centimes, the Swiss currency from a position of 77.66 as of late Friday. Against the yen, the US dollar remained mostly unchanged at Y 76.81 from Y 76.83 as of Friday.
The Tuesday market saw the euro spike higher against the falling US dollar. This came after leaders in both Germany and France hinted that they did not favor the use of bonds that are backed by the collective euro zone. This is something many investor had hoped for. In addition, poor second quarter growth data out of the euro zone also plagued the currencies. The euro moved to trade at US $1.4409 for the day. The US Dollar Index moved the current to 73.967 by the close of business in North America. The US dollar moved to trade Y 76.75 for the day as well. Against the UK pound moved to US $1.6464 for the day, a rise of 0.5 percent.
For the trading day on Wednesday, the US dollar fell against most other currencies. This came as many areas of the world faced global economic uncertainties, which concerned investors. Investors moved out of the currency markets and into commodities throughout the day's trading. The US Dollar Index moved to trade the US dollar at 73.697 for the day. The euro moved to US $1.4447 by the end of the day. The US dollar fell against the Japanese yen, trading at Y 76.50 by the end of the trading day. Most of the worries came from the lack of improvement in the US economy and the dovish stance that the Federal Reserve is taking.
The Thursday currency trading session saw the US dollar improve somewhat during the day against numerous major currencies. It was sought after, though, by investors who were looking for the safe haven status it offers. Investors continue to be worried about the continuous fears that growth is too slow and this pulled down most of the commodities and the global equity markets. Although both the Swiss fanc and the Japanese yen tend to be safe havens for poor news, investors remain worried that these governments will interfere within the markets if the currency's value continues to improve. This pushed them back to the US dollar. The US dollar index moved to 74.216 for the day while the euro moved to US $1.4331.
The Friday session saw the US dollar fall back against major currencies. It fell for the week, and hit a new low against the Japanese yen. The US Dollar Index moved the currency to 74.008 for the day and the euro moved to US $1.4389. The US dollar traded at Y 76.56 by the end of the session as well. Weak economic data continues to hold back the markets.