Posted May 10, 2011
US dollar climbs for week. Euro zone concerns weigh in.
During the currency trading session on Monday, the US dollar works on rebounding from the lowest levels it has been at since July of 2008. This came in as a response, in part, to the announcement that Osama bin Laden's death occurred. In addition, investors are leery that the Federal Reserve will not improve upon its very loose monetary policy in place currently. Investors want to see this rate rise to boost potential gains. The US Dollar Index moved the current from 72.960 as of the end of the day on Friday in New York to 73.053 for the day. During the day, it fell as low as 72.722, the lowest level it has been at since July of 2008. The euro moved from US $1.4826 as of the end of the day on Friday to US $1.4819 by the end of the session on Monday. The US dollar also moved from Y 81.09 to Y 81.25 for the day.
The dollar continued to climb on Tuesday. It moved higher against the UK pound, but did fall against the euro. Investors were waiting to learn of any news about the monetary policy changes from the European Central Bank, a meeting scheduled for Thursday. The US Dollar Index moved the current to 73.127 by the end of the day trading in New York on Tuesday. The UK pound dropped in value against the US dollar by 1.1 percent to US $1.6470. This occurred after economic data from the UK was less than good, showing a slowdown in the manufacturing sector. The euro moved to US $1.4831 for the day.
During the Wednesday trading session, the US dollar fell off of its highs for the week, however pared a decline in midday trading. Previously, it had fallen back to lows from December of 2009 before improving somewhat. This came as US stocks and commodity indexes moved lower. This came after the announcement of a less stellar forecast on the US serve sector. In addition, the US dollar's improvements came after the release of information showing that Portugal had negotiated an international bailout. The US Dollar Index moved the currency to 73.095, though it did fall as low as 72.942 during the day. The euro moved to US $1.4834. Against the Japanese yen, the currency moved to Y 80.61 a drop of 0.6 percent. Against the UK Pound, the US dollar moved to US $1.6503 for the day.
Thursday was a big day for the US dollar. It rose by the most it has since January of 2009 against the euro zone currency and it pared much of its losses against the Japanese yen as well. All of this occurred as a direct result of the European Central Bank's leader, President Jean Claude Trichet making comments that indicated that another rate hike was likely to occur in the euro zone. In addition, a report out of the US showed that the US jobless claims were climbing higher, unexpectedly, which further had investors concerned. The euro moved to US $1.4524 for the day. The US Dollar Index moved the currency to 74.143 for the day. The Japanese yen moved to Y 80.18.
Further growth by the US dollar was clear on Friday. The currency moved against the euro, pushing the euro down 3.1 percent for the week. This came after a report showed that Greece was considering the withdrawal from the EU. The US Dollar Index positioned the currency at 74.790 for the day. The euro moved to US $1.4349. The US dollar improved against the yen, moving to Y 80.64 for the day.