Posted January 07, 2013
This week we’ll be focusing on the currency changes that occurred between New Year’s Eve 2012 and January 4th in 2013. It’s a big time of the year for many of us, but will it be a big time for the currency markets too.
The US dollar started the week on 0.6197 on New Year’s Eve. It ended the day on 0.6185 so it was something of a disappointment before the day off that would follow. There was a similarly gradual drop against the Euro too, falling from 0.7585 to 0.7579. This certainly seemed to be the pattern that was in effect in many quarters, as the dollar fell from 0.9163 to 0.9149 over the course of the day against the Swiss franc as well.
As today was New Year’s Day, there was no trading on the currency markets.
Back to work today and back to normal too, as the US dollar dropped back further to 0.6137 against the British pound. The dollar also dropped a little further against the Euro, closing the day on 0.7540 as a result. There was a similar picture against the Swiss franc as well, as a predictable fall from 0.9149 to 0.9116 occurred here. Clearly it was a tough week, and the US dollar was being challenged in a number of ways by different currencies. The question was whether the US dollar would end on a good note, or whether the downturn would continue throughout the week.
If we thought yesterday was a disappointment, we soon felt better after today’s results. The dollar managed to perk up against the British pound, achieving a day ending rate of 0.6187 in the process. It was a similarly good day against the Euro, where the dollar managed to climb up to 0.7632. Just as yesterday painted a picture of disappointment across the board, so today painted a picture that was much healthier. Here the US dollar managed to perk up to 0.9227 against the Swiss franc, giving us hope that it might be even better off by Friday evening.
The dollar built on yesterday’s good performance and increased the exchange rate against the pound to a healthier 0.6242 in the process. We were hoping the dollar would do equally well against the Euro today and we were right. It managed to end the week on 0.7685 here. This leaves us with just the Swiss franc to work out, and in fact there was good news here as well. In this case the US dollar managed to edge up to 0.9292 to close out the week. So it was an interesting start to the month – and indeed to the New Year – and hopefully it will continue. The dollar managed to finish better than it had started in many ways, so that at least was good news.