Posted August 22, 2012
This week would turn out to have a mixture of good days and bad for the US dollar. But which would outnumber the other and decide whether the week was a good or bad one?
The US dollar opened the week on 0.6410 against the British pound, but it did not perform well on the first day. By the end of the day it had dropped back to 0.6371. As far as the Euro was concerned, the dollar started off on 0.8155 and dropped here too, finishing day one on 0.8104. The starting rate against another European currency, the Swiss franc, was 0.9793 for the dollar, and by the time the day was over this had changed to 0.9733.
After yesterday’s less than perfect opening performance against the British pound, the dollar fell further today. It did however manage to slow down the rate of erosion, stalling on 0.6363 by the end of the day. Another drop was in store against the Euro as well, as the dollar finished a disappointing day on 0.8095. It turned out to be a poor day for the US dollar as it fell against the Swiss franc too, resulting in a closing rate of 0.9723 for the day.
There was finally some good news for the situation between the dollar and the pound today, as the dollar finally started to head back up again. It closed out the day on 0.6375. A similar situation was borne out against the Euro, which fell against the dollar to result in a closing rate of 0.8145 today. There was an unexpected rise against the Swiss franc today though, as the dollar ended the day on an impressive 0.9784.
Yesterday’s good news between the dollar and the pound was soon forgotten as the pound took control again today, pushing the US dollar back down to 0.6368. This did not bode well for the final day of the week. There was another slight drop for the dollar against the Euro too, as it fell marginally to 0.8143 by the end of the day. The dollar also fell against the Swiss franc, although it did not wipe out all the gains made yesterday. Instead it fell marginally to 0.9780.
We feared the dollar may not be able to hold back the pound today, and we were right. The closing rate for the US dollar turned out to be 0.6364, which was lower than where it had started from against the pound. And the week’s closing rate against the Euro was 0.8105, 0.005 down on where it had started the week. The final rate for the dollar against the Swiss franc was a little disappointing as well, especially given the progress it had made mid-week. It closed out today on 0.9735, a little way down on where it had started off on the 13th. Perhaps next week will depict a more consistent performance by the US dollar.