Posted December 08, 2010
The US dollar improved against the euro during the day’s trading. This comes off of Bernanke comments.
The US dollar was up against the euro during the trading session. It also rose against the Japanese yen and other major currency. The euro struggled throughout the day as more information about the euro zone worried investors. Officials were set to meet to discuss the debt problems occurring throughout the euro zone.
The US dollar, which fell significantly against the euro on Friday was able to improve some of those numbers during Monday’s trading session. The US dollar index moves the US dollar from 79.377 at the end of trading on Friday in North America to 79.602 by the end of trading on Monday.
This increase in the US dollar comes after the poor jobs data out of the United States on Friday. The U.S. Labor Department provided a report indicating that the country’s unemployment rate rose during the month of November to 9.8 percent which is up from the 9.6 percent it was at in October. This was not the positive data that the investors were after and pushed many investors away from the US dollar.
The euro fell from US $1.3411 as of late in the day Friday in North American trading to US $1.3318 by the end of the trading session. During the day, it fell to as low as US $1.3245 during the session.
It is likely, many investors believe, that the euro zone debt will trigger another wave of capital moving out of the euro zone region, as more investors become too concerned to gamble on the risk of the euro. In some news reports, information indicated that Dominique Strauss Kahn, who is the head of the International Monetary Fund, it encouraging European officials to increase the size of the amount of emergency funding available to the euro zone nations which is currently set at some 750 billion euros.
Another group of officials considered the benefit of creating E bonds, or European sovereign bonds, that would be issued by the European Debt Agency as a way of bouncing back the euro and providing more stability for the region.
The US dollar saw some improvement against the Japanese yen during the Monday currency trading session. The US dollar moved from Y 82.53 on Friday in North American trading to Y 82.64 by the end of the trading day on Monday.