US Dollar Moves Towards Small Gains and No Bigger or Better News

Posted February 16, 2012

How would the week pan out for the US dollar? Would it be another trying time thanks to the uncertainty in many areas of the currency markets at the moment, or would it prevail and perform better than we might think?

 

Monday February 6 2012

As the week began the US dollar pushed ahead and gained some ground against the Euro. It moved up from 0.7598 to 0.7667 as a result. It also did well against the Japanese yen, thanks to better US yields. This meant it managed to achieve the highest rate it had against the yen since last week. The dollar also kicked off a good start against the Swiss franc, rising from 0.9156 to 0.9252 and looking stronger as a result. It also made small gains against the British pound so it wasn’t the worst start to the week.

Tuesday February 7 2012

The early good news against the Euro was forgotten by the time today was over. Instead of riding high the dollar fell back to 0.7626. It also looked weaker thanks to the cautious statement from the Federal Reserve. Even though the US has been stronger in its recent performance, it would appear that quantitative easing is still on the cards for the future. This harmed the performance of the dollar owing to the question marks over what would happen next. It also dropped some of the gains it had made on Monday against the British pound.

Wednesday February 8 2012

The Swiss franc got the better of the dollar today, pushing it back from 0.9217 to 0.9126 in the process. The Chinese yuan also did better and led to the US dollar falling from 6.3115 to 6.2990 over the course of the day. President Obama also made a statement on the European debt crisis today, stating that “absolute commitment” was required to resolve the problems the Eurozone was experiencing. Fortunately the Dow Jones was seen to end the day on a high, achieving the best closing rate it had done in some time.

Thursday February 9 2012

Small gains were the order of the day for the US dollar as it climbed from 0.6290 to a marginally higher 0.6296. Another tiny gain was seen against the Canadian dollar, but the amount was still under the one dollar parity mark. The US dollar dropped a small amount against the Swiss franc though, as it fell from 0.9126 to 0.9108 by the end of the day. However the dollar couldn’t quite maintain its domination of the Euro, as it was pushed down to allow the Euro into a two month high position.

Friday February 10 2012

The week may have started out in an uncertain manner for the US dollar as far as the Euro was concerned, but it did manage to bounce back by the end of the week. The final exchange rate was 0.7582. A similar bounce back was seen against the British pound, as the dollar rose from 0.6296 to 0.6340, giving it the highest exchange rate it had seen all week. The Dow was down at the end of the day, and all eyes were still on the situation in Greece as those in charge struggled to come to an agreement about the debt crisis. It has certainly been a frustrating and dramatic week in certain respects, and while the US dollar did well in some areas it struggled in others.

 

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