Posted January 29, 2011
The US dollar up on Egypt concerns. US dollar safer than euro.
The US dollar was up during the Friday currency session. This comes after concerns about Egypt increase and US data is less than positive. The currency was able to improve from some of the losses it faced after Moody's reporting on US credit.
The dollar improved against most major currencies during the trading session, even as US stocks fell back. With the concerns in Egypt, many investors turned to what they considered a safer option in the US dollar. During the early portion of the day, the US dollar got a boost from reports that indicating that the US economy improved at a slightly slower pace in the fourth quarter of 2010 than economists expected. Consumer confidence for the month came in higher than expected, though.
The US dollar did see an improvement after some losses after the United States Commerce Department said that US real gross domestic product improved faster in the fourth quarter than what was expected.
The US Dollar index showed the US dollar moving from 77.707 at the end of the Thursday currency trading session in North America to 78.171 by the end of the Friday currency trading session. This was up from the 77.699 the currency stood at before the growth data was released.
The euro moved lower against the US dollar during the Friday session. It moved from US $1.3738 at the end of the Thursday trading session to US $1.3608 by the end of the Friday session.
The UK pound moved from US $1.5933 at the end of the Thursday trading session to US $1.5866 by the end of the Friday session.
The Japanese yen moved higher against the US dollar during the Friday session. It improved against the Thursday sell off that hurt the currency after the S&P report reduced the country's credit rating. The US dollar moved from Y83.18 at the end of the North American trading session on Thursday to Y 82.16 by the end of the Friday session.
Many of the concerns with the US dollar stemmed from worries about the markets in general. The US dollar is considered safer amongst many investors than the riskier, and often higher profit option of the euro. As investors continued to be concerned about the up and down US data reports and the conflict in Egypt, many pulled back and moved to the safer US currency over other options.