US Dollar Falls On Yields

Posted December 31, 2010

US dollar falls against Yen. Moves lower as US yields fall.


US dollar falls against the euro and the yen during the Wednesday trading session. This comes after a successful bond sale in the United States pushed down yields. That lowered the US dollar’s appeal to investors.

US Dollar

During the trading session, the US dollar was under modest amounts of pressure. This comes as no surprise since very little economic data was released from Europe and there were no major announcements out during the week from the US. The US dollar index moved the use dollar from 80.367 at the end of the Tuesday trading session in North American trading to 79.748 by the end of the session on Wednesday. 

The biggest fall for the day on the US dollar was against the New Zeeland dollar. It also did not change much against the Swiss franc though it had repeatedly touched records against the franc in earlier trading this week, as did the franc against the euro.

The US dollar was less of an interest to investors since the Treasury Department’s sale of bonds did well, especially with foreign investors. The US dollar has fallen as much as 0.8 percent against most of its major counterparts during the trading session. 

Against the New Zealand dollar, the US dollar feel by 1.5 percent during the day’s trading. Against the UK pound, the US dollar moved up to US $1.5501 which is a 0.9 percent gain. Against the Swedish currency, as well as the Norwegian currency, the US dollar gained about one percent for the day over the previous day’s values. Against the Swiss franc, the US dollar was down 0.6 percent on the day. This caused the US dollar to touch a record low that day against the currency. 


Against the euro, the US dollar moved from US $1.3119 at the end of the Tuesday trading session to US $1.3232 for the day.


Against the yen, the US dollar moved to trade from Y 82.45 as of the end of the Tuesday session to Y 81.66 by the end Wednesday session.

The movements in the currency market were more exaggerated during the session since the volume during the trading session was significantly lower during this holiday week than it normally is. This leads to a more volatile currency market, most experts say, where transactions are more noticeable.