The Currency Converter

The US Dollar Exchange Rate: Dollar takes advantage of broad Euro weakness

November 15th, 2010

The U.S Dollar took advantage of broad Euro weakness last week, while the U.S currency also broke to a five-week high versus the Japanese Yen, as rising Treasury yields and signs of a pick up in U.S economic growth boosted demand for the Dollar. The greenback actually made gains against all of the 16 most actively traded currencies, before reports that are expected to show that retail sales and consumer prices improved on the month. The prospect of further Dollar gains against the majors looks increasingly likely in this environment, with retail sales expected to increase 0.7% in October. The sustainability of U.S consumer spending will be the driving force of the economy, but the Dollar will also benefit from an increase in risk aversion, following the renewed concerns over the sovereign debt crisis in the Euro-zone.

Written by Adam Solomon

No related posts.