Posted June 03, 2014
The US dollar is known to be the biggest reserve currency in the world. But is it always the strongest performer? Let’s see how well it did last week against a number of European currencies.
Here we go with another week of trading on the currency markets. Today the US dollar stood at 0.5938 against the British pound and edged up slightly to close on 0.5939 by the close of play. It went the other way against the Euro though, dropping back to 0.7334 from an opening rate of 0.7336. Did this foretell a different pattern to come? It dropped against the Swiss franc too, falling from 0.8958 to 0.8954.
More good news today for the US dollar – it improved further against the pound, rising to 0.5946 in the process. Our thoughts on the dollar versus the Euro yesterday were borne out today as the dollar dropped further to 0.7332. However even though the dollar fell on day one against the Swiss franc, it had other plans in mind today. It managed to improve and close on 0.8960 today. Perhaps this was the start of a better week against this currency as well.
This was clearly going to be a good week for the dollar. After two improvements so far, it jumped further to 0.5970 today. We also had some good news – finally – against the Euro as well, as the dollar improved markedly to 0.7348. It was a good day pretty much all round too, as we saw the dollar jump up to close things out on 0.8983 against the Swiss franc today. The question now was whether or not it could keep up that same performance for another two days.
Could we make it another good day for the dollar? We could as far as the pound was concerned. The dollar ended up on 0.5983 today. After yesterday’s good news against the Euro things went back in the opposite direction today. We ended up on 0.7346 at the close of play here. Could we improve that in the one day of trading still left to go through? We thought maybe we’d peaked too soon against the Swiss franc and today we were unfortunately proved right. The dollar fell to close on 0.8970 this time.
We knew things would change eventually and the dollar finally showed the difference today. It fell back to 0.5975 against the British pound, although this was still way better than the amount it had opened on. We did recoup some ground against the Euro too, ending things for the week on 0.7349 as a result. We had another drop in store against the Swiss franc though, as the dollar ended the week on 0.8968 here. At least this was still better than Monday’s starting rate. Things could have been a lot worse so we’ll take the good results where we can get them.