May, 2010 - Archive

Euro remains low over debt worries

The euro slipped further against the US dollar during Tuesday mornings trading session, nearing a four year low as concerns over the euro zone debt crisis continues. Traders await the news from a meeting, taking place later today between euro zone finance ministers, which is likely to provide more details of the trillion dollar bailout plan to prevent Greece’s debt problems affecting other European countries.

During the session, the euro fell as low as $1.2315 hovering just above the four year low of $1.2234 hit in April 2006, before steadying and rising to $1.2400 by the end of the session. The euro was also under pressure after news that the US Senate voted for its government to oppose the IMF bailout to countries that are unlikely to be able to repay them.

Euro down over concerns of fiscal tightening

The euro fell to a one week low against the US dollar and fell dramatically against the Swiss franc as investors steered away from the euro currency over concerns that fiscal tightening would lead to slower European growth.

During the New York trading session, the euro fell 0.6% against the US dollar and 0.9% against the yen, ending the session at $1.2542 and 116.53 yen respectively. The euro also hit a record low against the Swiss franc, ending a torid New York trading session at 1.3997 francs.

Elsewhere, the Australian dollar rose 0.4% against the US dollar and sterling fell by 0.9% against the US dollar after data showed that the deficit had widened more than expected during March.

Sterling up after Bank of England keeps interest rates low

Sterling continued to rise against the US dollar during Monday’s trading, after the Bank of England announced that it was keeping interest rates at their record low and Nick Clegg released a statement saying that decisions on power sharing talks would be concluded “as soon as possible”.

The Bank of England announced earlier in the day that its interest rate would be kept at 0.5%; the Monetary Policy Committee also announced that the limit on quantitative easing would say at £200bn.

Sterling rose by 1.3% against the US dollar during Monday trading, ending the session at 1.5008, a 2 day high and surged against the yen ending the session at 139.96 yen, a 3.1% increase.

Euro up as sterling hits one year low against the US dollar

The euro regained some ground on the yen and us dollar during Friday’s trading session after hitting a 14 month low against the greenback and its lowest position since December 2001 against the yen during Thursday’s volatile trade.

The euro rose 1 percent against the dollar and 3 percent against the yen, finishing the session $1.2790 and 118.20 yen respectively.

Meanwhile, sterling hit a one year low against the US dollar and dropped considerably against the euro as preliminary results of the UK election showed that no party would have a majority and there would be a hung parliament. The Conservatives won the most seats during the election results, but could not get enough to gain the majority.