Posted December 24, 2010
Euro improves. US dollar turns lower against the euro.
During the Thursday currency trading session, the US dollar turned lower against the euro. This came along with losses against the Japanese yen as well. The US dollar turned down against the euro due to the improvement in the Swiss franc, which gave it a boost of security going into the holiday weekend.
The euro was able to remain close to the US dollar in trading even for the day. This happened as the holiday season approaches, with the trading session being far less in volume. This lower volume makes smaller transactions look more significant than they are. The euro moved from US $1.3094 at the end of the Wednesday trading session in North American trading to US $1.3114. For the week, the euro is still down by 0.6 percent. It is going to end the year significantly lower as well. It stands at 8.5 percent lower for the year.
Speculation is that the euro’s improvement is mainly due to reduce volume. In addition to this, the euro jumped in value against the Swiss franc during the session, which also helped to encourage investors to buy the euro over the US dollar. The slew of good information out of the US on the country’s economy also encourages investors to move to the perceived riskier currency in the euro.
The US dollar headed toward the weekend with a weekly gain. A variety of US economic reports out also gave fuel to the movement back towards the risk euro. The US Dollar Index moved the US dollar from 80.781 at the end of trading in North America on Wednesday to 80.487 by the end of the trading session on Thursday. Most of the gains in the US Dollar Index earlier in the day were lost throughout the day’s trading. The US dollar improved each day this week, but after the Thursday session only added 0.1 percent to the weekly gain. The US dollar is still up 3.4 percent for the year.
Against the Japanese yen, the US dollar also fell. The US dollar moved from Y 83.59 as of late in the day trading on Wednesday to Y 82.91 for the day on Thursday. Against the yen, the US dollar has fallen about 1.2 percent for the week. It has lowest as much as 11 percent for the year thus far.