US Dollar Loses Gains

Posted February 08, 2011

US dollar drops late in day's session. Egyptian pound falls to the lowest level in six years.


The US dollar lost most of the gains it had in the previous day's trading on Monday against the euro. The currency mark saw the US dollar recovery from the earlier weakness and then lost those gains late in the session. One of the factors affecting the US dollar was the rising US Treasury yields that support the US dollar. This helps to make the US dollar more attractive of an investment to currency investors. 

During the trading day, benchmark US 10 year note yields improved to the highest level they have been at since earlier in May. This rise was quickly pared down during the Monday session which caused the reversal of the US dollar's gains. Both these yields and the US dollar improved on Friday. This improvement occurred after payroll reports from the US government was released and investors determined the information was not as beneficial and useful due to the poor weather conditions distorting the information. 

The US dollar index moved from 78.023 at the end of the currency trading day on Friday in North American trading to 77.994 by the end of the Monday trading session. 

The Euro

During the Monday currency trading session, the euro fell as low as US $1.3506 during the trading day. It did manage to recovery to a high of US $1.3597 to end the session in North American trading. This is a change from the US $1.3590 the currency stood at on Friday at the close of business. 


Against the Japanese yen, the US dollar moved up for the day, from Y 82.21 at the end of the North American trading session on Friday to Y 82.32 by the end of the Monday trading session. 

UK Pound

The UK pound lost its early in the session gains during the trading day on Monday. This came as a result of the Bank of England's meeting on Thursday. The UK pound moved from US $1.6105 at the end of the Friday trading session in North America to US $1.6125 by the end of the Monday session. 


Also notable during the Monday trading session was the movement of the Egyptian pound. During the trading session, the currency fell to the lowest level it has been against the US dollar in the last six years. The US dollar moved up by 1.7 percent against the currency.