US Dollar Continues Upswing

Posted December 11, 2010

US dollar up for fifth day. It is up 1 percent over yen and euro.

 

US Dollar

The US dollar gained again on the day on Friday for the fifth day of gains for the currency. The week was strong for the US dollar and continued to push forward as US trade deficit information showed that the deficit as narrower than what was expected. In addition, US consumer confidence was up, more than what was expected. This encouraged investors and allowed the US dollar to improve by more than one percent against both the yen and the euro for the week. 

Also helping the US dollar was that Treasury bonds yields rose significantly, which made buying US debt a higher benefit to foreign investors. All of this, plus additional good economic data pushed the US dollar forward. The US dollar index moved the US dollar from 80.042 as of the close of trading in North American trading on Thursday to 80.067 by the end of the Friday session. The US dollar as moved up 0.9 percent since the previous Friday session. It has improved four of the last five weeks.

Helping the US dollar was a report indicating that US exports were higher, which shows a boost in economic growth. Projections indicate the US economy will grow for the quarter more so than what was expected. Some experts state that the US dollar being weak is helping to boost the US economy significantly. According to reports, US consumer sentiment rose from 71.6 in November to 74.2 in early December.

Euro

The euro struggled through the day. Against the US dollar the euro moved from US $1.3243 as of the close of business sin North America on Thursday to US $1.3232 by the end of the Friday session. The euro has lost 1.6 percent in this last week against the US dollar. 

The euro continues to struggle due to the concern about the euro zone debt problems. New reports indicate that more debt problems could surface in the coming weeks in other countries including Italy.

Japanese Yen

Against the Japanese yen, the dollar moved up as well. It moved from Y 83.71 at the end of the session on Thursday to Y 83.91 by the end of the Friday session. The US dollar is up 1.7 percent against the yen. This marks the best week the US dollar has had against the yen since September.

 

 

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