Posted February 16, 2011
Euro down to three week lows. US dollar up on Japan info.
During the Monday currency trading session, the US dollar rose to the highest level it has been at against the euro in the last three weeks. This came mainly due to the worries that investors have about the euro zone's continuous debt troubles. Many investors are becoming less optimistic and more skeptical about a solution that has yet to come forward to address and end all of the euro zone's concerns. This pushed investors to the perceived safety of the US dollar during the day's trading session.
The US Dollar Index moved the US dollar from 78.379 at the end of North American trading on Friday to 78.602 by end of the day trading on Monday.
The euro moved from US $1.3558 at the end of the trading session on Friday in North America to US $1.3484 by the end of the trading day on Monday. During the trading day, though, the euro managed to fall to US $1.3426. This is the lowest the single currency has been at since the end of January.
As finance ministers meet, more evidence and information comes forward about the euro zone's continued financial problems. Specifically weighing on investors is the euro zone peripheral nation debt concerns. These meetings continue to show that not all leaders in the region are on the same page, which makes more investors concerned about holding onto the euro. Finance ministers met to discuss methods to work to provide strength to the European Financial Stability Facility. This is the euro zone's fund created specifically to help handle the debt problems in the region.
Compromises are necessary, most believe, but are not a fail all solution. Many European officials may view the end result as a non-effective solution overall. One example of these conflicts was a mention by Jean Claude Juncker, who is the euro zone financial minster chairman. He stated that the fund needed not necessarily more money, but for countries like Greece, with significant debt problems, to take bigger budget deficit reduction targets into line.
Against the UK pound, the US dollar did not improved. The US dollar moved to US $1.6036 for the day, which was an improvement for the UK currency of 0.2 percent.
The US dollar did fall against the Japanese yen during the session as well. It moved from Y 83.46 at the end of the trading session on Friday to Y 83.26 by the end of the Monday session.