Posted September 11, 2012
Some weeks will prove more challenging than others for the dollar. This would turn out to be one of them. Would it have the strength to come out on top against a raft of European currencies, or was there another story in store?
The week opened with a rate of 0.6313 against the British pound, and by the time the first day was over the dollar had managed to push back and increase its rate to 0.6324. The dollar didn’t have such a good start against the Swiss franc though; here it started on 0.9601 and dropped to 0.9585 by the end of day one. So how did the dollar do against the Euro? Well, it started on 0.7995 and by the end of today it had dropped to 0.7980, so it wasn’t the best start to the week.
The good start the US dollar had made this week was continued today as it pushed up to 0.6333 against the pound. The rot was slowed against the Swiss franc but the dollar still lost a small amount to send it back to 0.9571 by the end of the day. The dollar didn’t seem to be able to do much against the Euro either, as it fell further to 0.7969 by the close of play today.
Today would be the day the British pound pushed back against the US dollar, knocking it down to 0.6311 in the process. These are small changes though, so perhaps the week will continue to go well for the dollar overall. We had some good news against the Swiss franc though, albeit only a tiny amount, as the dollar rose to 0.9573 by the close of play. Finally we saw a slight improvement against the Euro too, but only by the slightest amount as it climbed to 0.7971.
Our idea that the dollar may bounce back against the pound today was not borne out – instead it dropped to 0.6306, making us wonder whether tomorrow would be a good or bad end to the week. The tiniest drop was recorded against the Swiss franc today, as it fell from 0.957354 to 0.957350. A similar story was seen as far as the dollar versus the Euro was concerned, with a mere 0.008% increase seen against this currency. At least the result went the way of the dollar.
There was a marginal loss against the pound today but it was so marginal the rate of 0.6306 did not change so no great worry there. There was bad news to close the week against the Swiss franc too, as the dollar slid back to close on 0.9522. Of course we wanted a good result against the Euro to finish the week with as well, but would we get it? Unfortunately the answer was no, as the dollar slid down to 0.7929 after yesterday’s mild improvement. It seemed as if this was not the best week for the dollar.