Posted July 02, 2012
The US dollar had some tough battles to fight this week. As you’ll see when you read the report, one good result on one day didn’t mean we’d get the same the next day as well.
The US dollar started the week on 0.6413 against the British pound, and it had a good opening day, climbing to 0.6428 by the close of it. The dollar opened on 0.7975 against the Euro, and did well to climb to 0.8007 by the end of the day. And what about the Chinese yuan: could the dollar do better there? It started on 6.3648 but ended Monday on 6.3633 so we got the message there. There was another improvement against the New Zealand dollar as the US counterpart climbed from 1.2679 to 1.2717.
The first day of the week may have been good for the US dollar but the second one did not pan out so well. Instead it fell to 0.6409 against the pound, making us wonder whether this would be the pattern for the rest of the week, or whether it would pick up again. There was another climb in store for the dollar versus the Euro, picking up to 0.8016 in the process. There was a slight improvement against the Chinese yuan too as the dollar pushed ahead to 6.3636. But there was a drop against the New Zealand dollar as the US version fell back to 1.2652.
If we were hoping for a better result against the pound today we got it – but only by a small margin. The closing rate was 0.6410. The opposite was true against the Euro though, as the dollar lost a tiny amount of ground to send it back down to 0.8014. If you were expecting another loss against the Chinese currency you would be right there as well. The dollar disappointed us by dropping to 6.3575 here. There was good news against the New Zealand dollar though as the US dollar pushed it to 1.2665.
There was better news today as far as the dollar versus the pound was concerned. The closing rate was 0.6433, giving us an opportunity to hope for a good close to the week. It was also a good day against the Euro, as the dollar rose to 0.8052 by the close of play. There was a minor turnaround against the Chinese currency as well, but not by much – the improvement sent the currency to 6.3584. Nothing happened against the New Zealand dollar today – but would there be a last minute improvement on Friday?
Did we get the good result we wanted to finish the week against the pound? No we didn’t, because the final result was 0.6408 – a disappointment to be sure. Unfortunately all the good work the dollar had put in against the Euro throughout the week was also wasted, as it fell to a low point of 0.7942. Finally the Chinese currency pushed the dollar back down to 6.3551 by the close of play. The last minute improvement we hoped for against the New Zealand dollar didn’t happen as our dollar fell to 1.2506.