Posted September 17, 2010
US dollar falls against euro. Yen continues to stay down after intervention.
The yen remained lower during the Thursday trading session. This comes after an estimated Y 2 trillion intervention occurred that made investors very cautious in purchasing yen during the day. Officials said that they may take more action if the yen continues to gain strength as it has over the last months. This drop in the yen’s appeal may have helped the euro to improve on the day, some investors say. The country’s officials said it will continue to intervene as long as it is necessary to do so.
Meanwhile, the euro managed to improve during the Thursday trading session. It improved to the strongest levels it has been at against the US dollar over the last month. This improvement stems partially from the yen intervention but also from a successful Spanish government debt auction. This helped to push the concerns over the euro zone’s debt crisis to the backburner. Italy and Greece also had successful debt auctions during the beginning of the week.
During the trading day, the euro improved against the Swiss franc. The euro managed to gain as much as one percent on the franc. This comes after the Swiss National Bank noted that it would keep the key interest rates unchanged. The national bank stated that inflation was weakening and that a slowdown in the country’s expected growth in the rest of 2010 and 2011 is evident. The US dollar also improved by as much as one percent against the Swiss franc during the day.
During the trading day, the Russian ruble fell to its lowest level since trading in February. It is expected that the national bank will intervene in the country to help prop up the currency.
Also noteworthy was statements made by the Brazilian finance minister. He stated that the country was ready to hold back unwanted appreciation in the real. During the week, the Brazilian real improved significantly against the US dollar.
By The Numbers
During the day, the euro moved from US $1.3012 as of Wednesday evening to US $1.3085. The euro moved from Y 111.36 to Y 112.29 by the close of trading in New York. The US dollar moved from Y 85.63 to Y 85.81. The US dollar moved from CHF 1.0035 to CHF 1.0146. The UK pound moved from US $1.5623 to US $1.5635.