2009-10-09
The dollar rose on Friday, supported by Federal Reserve Chairman Ben Bernanke’s comment last night that the Fed will tighten monetary policy “when the economic outlook improves sufficiently.” This is not a big surprise to the financial markets; however, in conjunction with White House economic adviser Larry Summers’ support for the dollar, it helped the US currency today. Summers said “any idea that nations can devalue their way to prosperity is one that economic experience very much belies.”
2009-10-08
The dollar fell on Thursday as better-than-expected initial jobless claims indicated the US economy is slowly improving. The Bank of England and European Central Bank kept the benchmark interest rates at 0.50 percent and 1.00 percent, respectively, showing no signs of changing their monetary policies anytime soon.
2009-10-07
At cycle lows against most major currencies, the dollar found support on Wednesday. The dollar index rose to 76.42 after testing the 76-handle support.
2009-10-06
The dollar fell on Tuesday, pressured by a report that oil producing nations along with Japan, France and China were discussing replacing the USD with a basket of currencies and gold to price oil transactions. The report, although denied by the parties, pressured the greenback in this dollar skeptical environment.
2009-10-05
The dollar fell on Monday as the G-7, not addressing the dollar weakness, just repeated its statement from the previous two meetings that “excessive volatility and disorderly movements” in exchange rates threaten the global stability. The ISM US non-manufacturing index expanded for the first time since August 2008.
2009-10-02
The dollar closed mixed on Friday, unable to penetrate important technical levels. The dollar and risk aversion got a boost after US employment fell more than expected, but pared overnight gains as PIMCO’s Bill Gross said he believes the US wants a weaker dollar and US stocks recovered most of earlier losses.
2009-10-01
The dollar rose on Thursday as risk aversion increased. The S&P 500 dropped 27.23 points to 1,029.85. The treasury 30-year bond yield fell below 4% for the first time since April. US initial jobless claims increased, the ISM US manufacturing PMI declined and inflation remained subdued, casting doubt over the pace of the US economic recovery.
2009-09-30
The dollar fell in volatile trading Wednesday. The S&P 500 declined 3.53 points to 1,057.08 but recovered most of earlier losses incurred on a disappointing Chicago PMI report.
2009-09-29
The dollar traded mostly higher on Tuesday. The dollar index rose and tested the resistance from its long-term downtrend in the 77-78 area. If this is broken, the dollar will rally. US house prices climbed the most since 2005 while consumer confidence unexpectedly fell.
2009-09-28
The dollar traded mostly higher on Monday despite a US equity market rally. Stocks rose for the first day in five. The S&P 500 climbed 18.60 points to 1,062.98. The USD/JPY recovered overnight losses after Japan’s Finance Minister Hirohisa Fujii, who opposes intervening in the currency markets, stated that he is carefully monitoring the strengthening yen and stable currency moves are desirable.
2009-09-25
The dollar closed mixed on Friday, sharply lower versus the yen but higher against the pound. The G-20 leaders said they will keep stimulus measures as long as needed and reduce economic imbalances in trade and savings. The G-20 will also raise banks’ capital requirements and force banks to tie bonuses to long-term performance.
2009-09-24
The dollar gained for a second day as declines in equity and commodity markets increased risk aversion. US economic figures were mixed. August existing home sales unexpectedly decreased, while initial and continuing jobless claims fell to lower-than-expected levels.
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