Posted March 28, 2011
The euro falls then recovers. Traders focus on euro zone.
During the currency trading session for the week, the US dollar become the lesser talked about currency. Most focus was on the euro, as it moved lower than higher during the week's trading session.
On Monday, the focus was still on the Japanese yen. During the trading day, it moved lower against the US dollar as well as many other currency rivals. Investors felt more reassured as conditions improved, at least for the day, in Japan's nuclear reactors. In addition, potential future intervention by the Group of Seven also encouraged traders.
For the day, the US dollar moved from Y80.92 as the end of the currency trading session in North America on Friday to Y 81.05 for the day by the end of Monday's session. The US dollar index moved the US dollar from 75.654 on Friday's close to 75.046 by the end of the Monday session.
During the Tuesday currency trading session, the US dollar moved up against the euro for the day. This came in as speculation grew that the euro zone's weaker member, Ireland, was struggling to repay its debt. The euro zone debt concerns are still weighing in heavily across the world as traders wonder if a solution can be found.
For the day, the US dollar index moved to 75.418 for the day. It addition the euro moved from US $1.4227 at the end of the Monday trading session to US $1.42 by the close of Tuesday's session. During the day, it moved as high as US $1.4249, which is the highest it has been since November.
The Wednesday currency trading session was one where the US dollar continued its march against the euro. It also improved against the UK pound during the session. On this day, the concerns were on Portugal. The Parliament of the country rejected its austerity plan, which sent currency traders scrambling to move to safer ground in the markets.
For the day, the US dollar index moved the currency to 75.881 by the end of the Wednesday trading session. Nevertheless, the US dollar index remains down about four percent for the year thus far. Against the euro, the US dollar moved to US $1.4096 for the day. The UK pound moved to US $1.6238 after being at US $1.6387 the day before in North American trading.
The Thursday trading session saw the euro gain ground. In fact, the euro managed to move up to the highest level it has been at in four months against the United States dollar. The focus for the day's trading session was on the European leaders summit. In addition to this, investors were still trying to determine what was occurring in terms of Portugal's continuing crisis, which was becoming more political than ever.
For the day, the US dollar index moved the currency to 75.665 for the day in North American trading. The euro moved to US $1.4181 during the day. During the trading session, it did rise as high as US $1.4220, which is the highest it has been at since November.
The week ended with the US dollar improving on its gains versus many of the rival currencies it battled throughout the week. This came in after the Federal Reserve official made comments about the potential movements of the bank. The official indicated that the Fed should be moving to tightened monetary policy within a year.
The US dollar index closed the week in North American trading at 75.665 by the end of the session Friday. The euro moved to US $1.4068 for the week. The euro fell by 0.8 percent for the week while the US dollar index climbed by 0.7 percent.