US Dollar Falls Against Rivals

Posted October 15, 2010

The US dollar fell against most of the major currencies. Stimulus in the US and prospects for Asian economic growth push dollar lower.


Asian Markets

During the currency trading session on Thursday, the US dollar fell against most of its major currency traders. The Asian markets played a significant role in the day's trading. The Monetary Authority of Singapore has made monetary tightening moves. That also caused the US dollar to slide during the day's trading. Investors believe that the decision to tighten up monetary policy means that the Asian country's economies are stronger and can handle the more restrictive monetary policies. On the other hand, the US dollar looks weaker with the need for additional stimulus from the US government for its economy.

As an investor, there are fewer reasons to hold on to the US dollar. The move by investors to sell off the US dollar was only encouraged by the move in Singapore. 

US Dollar

Investors will likely watch Friday when Federal Reserve Chairman Ben Bernanke is scheduled to speak at a conference in Boston. They will be looking for any information on the extent of and the timing of any further measures for the US economy. Many believe that asset purchasing programs, the stimulus most investors believe is likely to be the Fed's move, will be less extensive than what was once believed.


Against the yen, the US dollar fell as well. The US dollar fell to 15 year lows against the yen during the Thursday trading session. Investors believe that the Japanese government is likely to intervene soon in the markets to hold back the growth of the yen. 

The ICE Dollar Index showed the US dollar at its lowest point this year at 76.259 during the session.


Also notable was that the US dollar fell significantly against the China yuan during the trading day. The yuan moved to its highest point against the US dollar since it began trading in the markets in 1994.  


During the currency trading day, the euro moved to US $1.4123. That is the highest level it has been at since January. 

By the Numbers

By late in the day on Thursday in New York, the euro had moved from US $1.3964 as of Wednesday at close of business to US $1.4077. The euro moved from Y 114.14 to Y 114.74. The US dollar moved from Y 81.74 to Y 81.51. The US dollar moved from CHF 0.9584 to CHF 0.9527. The UK pound moved from US $1.5892 to US $1.6013.