Posted September 21, 2010
The US dollar fell against most of its rivals. Investors took into consideration the Fed meeting on Tuesday.
During the trading session on Monday, the US dollar fell against most of its competition as investors edged their moves against the upcoming Federal Reserve meeting to be held on Tuesday. Investors remain concerned about the potential for the Federal Reserve to use new economic stimulus measures to boost the faulting economy. It is not expected that the Fed will announce any new measures at the Tuesday meeting, but investors are concerned about any economic information that come from the meeting.
Also important to investors was the lingering concern over the Japanese yen. However, the Japanese markets were closed for the day for a national holiday. That kept all of the trading for the day light. Many investors still believe that the Japanese officials will continue to intervene in the market to keep the value of the yen lower. Investors are likely to see the yen spring back into action the rest of the week against the US dollar. If the US dollar drops below 85.0, investors believe that the Japanese officials will intervene.
During the currency trading session, the Australian dollar rose against the US dollar. It gained as much as one percent against the dollar during trading. The Australian dollar is tied closely with the economic global growth. The growth in the dollar for the day was due to the strong evaluation of the Australian economy. Australian consumption is up after reports of a high global reliance on the country’s commodities. This helped to push the Australian dollar up.
During the trading day, the Australian dollar hit a series of two year highs. It moved to US $0.9495 from being at US $0.9372 on Friday. Investors believe that the Australian government will move its key lending rate higher in an upcoming meeting.
The US dollar did manage to improve against the UK pound for the day. It gained about 0.5 percent on the day. This came after the Bank of England stated that the broad money supply was flat for the month of July.
By The Numbers
By late in the day on Monday, the euro had moved from US $1.3039 to US $1.3061. The euro moved from Y 112.89 to Y 112.02. The US dollar moved from Y 85.82 to Y 85.75. The UK pound moved from US $1.5626 to US $1.5552. The US dollar moved from CHF 1.0098 to CHF 1.0052