Posted May 14, 2012
So it’s back into the markets once again to see whether the US dollar could perform well against the usual range of strong currencies from other parts of the world. Would this be a good week or a bad week for the US dollar?
The week opened with a rate of 0.6182 against the British pound. There was little improvement during the day by the dollar still managed to eke things up a bit to 0.6187 by the close of play. The opening rate against the troubled Euro was 0.7614 and by the time the day was done the dollar had well and truly capitalised on the European single currency, rising to 0.7672 in the process. The dollar also went up against another European currency last week, the Swiss franc, opening the week on 0.9148 and rising to 0.9216 by the time Monday was over.
After yesterday’s subtle performance against the pound, the dollar went in much the same direction today, adding on another tiny amount to reach 0.6191. Another small improvement was seen against the Euro today as the dollar climbed to 0.7677. Yet another improvement was available for the dollar too as far as the Swiss franc was concerned, but it was a modest one, closing the day on 0.9223.
This was clearly the week of small improvements as far as the US dollar was concerned. Even though today produced another one it took the currency over a symbolic rate, hitting 0.6215 in the process. The good news continued against the Euro as the dollar inched over the next barrier, rising to 0.7722 as it did so. But could the dollar keep on doing well against the Swiss franc? Indeed it could, and by the day’s end it was up to 0.9274.
It felt as if the dollar had worked for its gains against the pound so far. But today it lost almost all of them as it slid back to 0.6186. If we thought we’d get a better result against the Euro we were sadly mistaken as the dollar lost a little ground here too, falling to 0.7715 as it did so. This was clearly the story of the day because the dollar also fell against the Swiss franc, albeit not by too much. It limited its losses here to 0.9268, just a tiny amount lower than yesterday.
The dollar didn’t quite save the best for last against the pound sterling, but it did recoup some of yesterday’s losses to bounce back to 0.6205. There was another renewed attempt to conquer the Euro too, as the dollar closed out the week on 0.7725. Obviously the idea was to make sure the US dollar could grab back some of the ground it had lost yesterday. It managed to make this happen against the Swiss franc too, and the final rate for the week in that territory turned out to be 0.9279. So not a bad week all in all as far as the US dollar was concerned.