US Dollar Up On Debt Concerns

Posted November 17, 2010

US dollar improves as Ireland and Greece debt concerns weigh in. US yields higher.


US Dollar

The US dollar improved during the Monday trading session. Its improvement was due to numerous factors, but specifically due to the euro zone concerns about debt. The dollar managed to improve to the highest levels it has been at since late in September. 

In addition to the move away from the euro, investors also bought the US dollar as US bond yields increase. This has helped to make Treasury debt more attractive to investors. The US dollar improved upon its gains late in the session on Monday after the yields jumped. That jump stemmed from a report from Moody’s Investors which was positive for the US rating.

By the end of the trading day in North American trading, the US dollar index positioned the US dollar at 78.652 which is an improvement from the 78.106 that it stood at, at the end of the trading day on Friday. At the highest level, the index positioned the dollar at 78.665.


Investors shied away from the euro mainly due to the concerns over euro zone debt. In particular, many investors believe that Ireland will need to tap into financial support in order to maintain its debts. That made the euro look far less favorable to investors. By the end of the trading session in New York, the euro had moved from US $1.3696 at the end of the Friday session to US $1.3579. It hit a low point of US $1.3570 during the session, which is just slightly above the weakest level the euro has been at since late in September.

There are some reports indicating the Germany and other European Union countries are pushing Ireland to seek out a bailout in order to prevent any further concern spreading in the financial markets. Many investors believe that if the country does accept the bailout, that this will only focus attention on other euro zone debt problems, including Portugal and Spain’s debts. 


The Japanese yen fell against the US dollar during the Monday session as well. The dollar was impressively up by some 1.8 percent since the Federal Reserve meeting. During the day, it moved from Y 82.49 as of late Friday in North American trading to Y 83.16 for the day.

UK Pound

The UK pound fell against the US dollar as well during the Monday trading session. It moved to US $1.6053 for the day, which is a fall of 0.4 percent.