Posted January 03, 2012
The US dollar managed to close out the year up for the second year in a row. The market trading during this week was light, especially on Monday and Tuesday for the holidays. However, investors looked positively on the increase in the US economy, which continuing to worry about the euro zone.
The Monday session after the Christmas holiday had light trading. However, the euro did manage to move slightly higher during the day. This happened during the early in the day session in East Asian through the afternoon hours there. Since most markets were closed for the holidays, trading overall was light. The US dollar was slightly weaker by the end of the session against most of its rival currencies. The euro started the day at US $1.3047 from the Friday trading session in North America and moved to trade at US $1.3059 by the end of the day's trading. The US dollar bought Y 78.03 at the close of business on Friday but moved to trade at Y 77.99 by the end of the day on Monday.
The Tuesday trading day saw the US dollar fall again. This came as information out as reports indicated that US consumer confidence was strong. This pushed the US stock market higher as well. However, trade during the day's session remained low, due to the holiday week. The US dollar index moved the currency to 79.792 by the end of the trading in North America. This was a drop of about .03 percent for the day. The euro moved to trade at US $1.3074 for the day. The European markets remained closed for the day, though. The US dollar bought Y 77.85 for the day.
The Wednesday trading session saw the US dollar move up for the day. The euro managed to fall to the lowest level it has been at since September of 2010. The stock market in the US also lost significantly. All of this stems from the European Central Bank's release of data. The US dollar index moved to trade at 80.526 for the day. The euro slipped to US $1.2938 for the day. The US dollar bought Y 77.95.
Thursday brought with it more improvement of the US dollar as investors turned away from risk. The US dollar pushed the euro to the lowest level it has been at since 2000 against the Japanese yen as well. The euro did manage to recover from the lowest level it has been at in 11 years against the yen, but continued fear in the markets plays a role. The euro moved to trade at US $1.2949 for the day. The euro moved to trade at Y 100.54. The US dollar index moved the currency to 80.425 for the day. Much of the loss comes from data about borrowing costs falling to euro-era highs. The upswing in the US economy continues to help investors, though.
The Friday session saw investors moving to buy the US dollar. The euro fell 3.4 percent for the year against the US dollar. The Japanese yen continued to be the strongest role player in the market in terms of gains throughout the year. However, the US dollar index moved the US dollar up 1.6 percent for the year. It also gained in 2010, with the dollar closing out at 80.289 for the day. The euro moved to trade at US $1.2996 by the end of the session. The US dollar feel to Y 76.99 for the day.