US Dollar Up On Egypt

Posted February 21, 2011

US dollar up as Egypt conflict worsens. Euro falls off three month highs.

 

During the currency trading session on Wednesday, the US dollar improved on the day as the euro came off three month highs from the previous session. Most of the currency movements during the day were influenced, in some way, by the protests in Egypt, as those protests grew violent. The investors moved to higher, safer ground during the trading day as perceived in the US dollar and the euro.

US Dollar

During the currency trading session, the US dollar moved from 76.008 as of the end of trading on Tuesday in North America to 77.127 by the end of trading on Wednesday. 

One factor affecting the US dollar was a report out about the US employers. The report indicated that private US employers had added more jobs in the previous month to payrolls than what investors had hoped for.

Yen

The Japanese yen moved from Y 81.40 at the end of the Tuesday trading session in North America to Y 81.58 by the end of the Wednesday trading session. 

The Euro

The euro fell to US $1.3637 during the trading day, off from US $1.3835 in late in the trading in North America on Tuesday. The euro was as high as US $1.3862, which is the highest level the euro has been at in three months.

The movements within the marketplace across the board were fueled with concern over the conflict occurring in Egypt, with many currency traders becoming worried about the region as protests turned to violence. Both the US dollar and the Japanese yen are considered safer currencies for traders, which helped both currencies to improve during the Wednesday trading session.

Also affecting the euro during the Wednesday trading session was a report from the credit rating agency Standards & Poor which reported that Ireland's debt had a negative outlook. The agency dropped the country's credit rating down a notch to a A minus rating. The concerns the agency has with the country include the amount of exposure to the country's struggling financial sector. 

During the trading day, the euro was higher, even moving to the highest level the currency has seen in three months. This came as European leaders were moving closer to an agreement that would allow the European Financial Stability Facility to be used as a method to buyback funds of troubled debt within the euro zone.

 
 

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