Posted February 27, 2012
It was a dramatic week on the currency markets as the US dollar had a fight on its hands to gain good results, and various other currencies had their own battles to fight. The Euro also had its challenges thanks to the situation in Greece.
If the US dollar wanted to start the week well against the Euro, it didn’t manage to meet its own expectations. Starting from a rate of 0.7599 it fell back to 0.7538 by Monday evening. The nearing of a potential agreement on Greek debt seemed to calm the Euro a little as it got the better of the British pound. The pound in turn did better than the US dollar, which seemed to be having a tough time to start the week.
The dollar managed to regain a little lost ground against the Euro today, pushing back to 0.7563 in the process. The dollar also managed to improve a little against the Hong Kong dollar, but only by a marginal 0.0011. The US dollar had been a little below parity with the Canadian dollar on Monday, but it rose closer to that mark today, rising to 0.9962 in the process. Apparently weaker sales in the retail market were to blame for the adjustment in exchange rates.
The US dollar was clearly having an up and down week as it lost the increase it had made against the Euro yesterday, falling to a lowly 0.7558 in the process. It stayed steady against the Hong Kong dollar, losing just the tiniest bit of ground at the sixth decimal point in the exchange rate. The race to parity took one step closer with the Canadian dollar, as its US counterpart pushed ahead to 0.9984. Elsewhere the Euro was said to be suffering owing to poor results coming out of the Eurozone, and the Japanese yen depreciated against the US dollar.
While the Euro has pushed and pulled against the US dollar so far this week, it seemed as if the dollar was losing ground overall. It dived to 0.7518 by the close of play today. If the US dollar had parity in mind with the Canadian dollar so far this week, it fell back today. By the close of play it was sitting on 0.9969, although this was still closer than it had been at the start of the week. Elsewhere the New Zealand and Australian dollars had a good day against the yen, thanks to a poor performance by stocks in the Asian markets.
The final day of the week dawned and the US dollar found itself in the weakest position yet as far as the Euro was concerned. It limped to the finish line with 0.7456 on the currency converter. In fact the dollar was cut down by a top performing Euro which was in the best shape it had been in for a couple of months. The biggest drop of the week against the Hong Kong dollar occurred today too, as the dollar fell to 7.7550 to close out the week. But it wasn’t all bad news as the American currency pushed back against the Canadian dollar to finish on 0.9985. It had been an overwhelmingly active and challenging week for all concerned.