US Dollar Falls On Euro

Posted January 11, 2011

US dollar down against euro. European Central Bank buying in market triggers moves.

 

US Dollar

During the currency trading session on Monday, the US dollar fell against the euro. This came after some reports indicate that the European Central Bank was in the marketing buying bonds from Portugal. In addition to this, the US dollar fell due to some investors trading in on the increases the dollar has seen in trading over the last week. Many investors believe that the euro’s strength had more to do with investors wanting to cash in on the recent improvements in the US dollar than anything else. During the last week, the US dollar gained as much as 3.4 percent against the euro.

The US dollar index showed the US dollar moved from 81.02 as of the end of trading on Friday in North America to 80.87 by the end of the Monday trading session. The index did position the US dollar as low as 81.13 during the trading session. 

Euro

The US dollar improved on the day moving from US $1.2931 at the end of the trading session on Friday in North America to US $1.2951 by the end of the trading session on Monday. The US dollar did come back during the session, when it dropped to as low as US $1.2872 during the trading day. Many investors believe that the euro will not maintain these highs, but will, throughout the first quarter of the year, to struggle. The biggest factors affecting the euro zone currency remains the unknown risk of other defaults in the region.

Yen

Against the yen, the US dollar also fell during the trading session on Monday. It moved from Y 83.04 as of the end of Friday trading in North America to Y 82.72 by the end of the Monday session. It is important to note that the yen was trading at a much lower volume than is considered normal since the Tokyo markets were closed on Monday for a public holiday. Over the last week, the US dollar still holds a 2.4 percent gain on the yen.

UK Pound

Against the UK pound, the US dollar also fell. It moved from US $1.5560 at the end of the Friday session to US $1.5568 by the end of the Monday session. 

Australian Dollar

Also notable was that the Australian dollar managed to make some gains and losses throughout the session. The Australian dollar moved to 99.55 US cents.

 
 

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