US Dollar Up As Euro Zone Debt Concerns Arise

Posted November 10, 2010

The US dollar improves. Investors worried about debt turn away from euro.


US Dollar

During the trading session on Monday, the US dollar improved against the euro and other major rivals as European debt once again was on the minds of currency traders. The euro was held to significant losses across the board. Debt concerns in both Portugal and Ireland seemed to push the euro lower.

The US Dollar Index moved the US dollar from 76.582 as of late Friday in North American trading to 76.979 by the end of close on Monday.

The Euro

The euro fell during the trading session. By late in the day in North American trading on Friday, the euro was at US $1.4039 but by the end of the trading session on Monday it had fallen to US $1.3924. Intraday trading allowed the euro to fall to US $1.3886 at one point, the lowest point for the euro during the day.

With a loss against the US Dollar, the euro also hurt against the Japanese yen. Against the yen, the euro was down .9 percent on the day, when it traded at Y 113.1 by the end of the day. The euro also fell against the Swiss franc during the trading session by 0.3 percent, moving it to 1.3445 francs for the day.

The falling value of the euro was due at least in part to the rising cost to insure debt sold from Portugal and from Ireland. This level rose to new levels during the trading session Monday. European sovereign debt concerns was a problem for the euro earlier this year, but had moved to the backburner as other concerns, including the lagging US economy continued to be at the forefront. Now, these debts are back top of the mind for investors.

Some experts warned that the market is likely to remain volatile until investors can handle the concerns in regards to these two countries and the potential need both will have to tap into a rescue fund.

UK Pound

Against the UK pound, the US dollar moved from US $1.6202 at the end of the trading session on Friday to US $1.6136 by the end of the day on Monday. The euro moved lower some .06 percent against the UK pound pushing it to 86.32.


The US dollar improved against the yen, moving from Y 81.35 as of late Friday to Y 81.19 by the end of the trading session on Monday