Forex: Weekly review
On results of week the dollar has grown against all major currencies except for yen. The American currency for last five trading sessions has grown on 2.07 % against euro, has grown on 1.89 % against pound and has lost 0.12 % against yen. The most growth has shown the American dollar against next currencies: the Canadian, Australian and New Zealand dollars for a week lost more than on 5 %.
On Monday the euro weakened to almost a seven-month low against the dollar after European officials failed last week to offer a plan to halt the region’s debt crisis as Greece struggles to avoid default.
The dollar rose against all its major counterparts except the yen as Treasury two-year yields fell to a record before the Federal Reserve begins its two-day meeting.
The yen rallied to within 0.5 percent of its record against the greenback on refuge demand before European Union and International Monetary Fund officials judge whether the Greek government is eligible for its next aid payment.
On Tuesday the Swiss franc fell against the dollar and the euro amid speculation the Swiss National Bank may tighten its target to limit the currency’s strength. Swiss central bank spokesman Walter Meier in Zurich declined to comment when asked about speculation that policy makers may adjust the franc ceiling against the euro. It fell 0.6 percent to 88.77 centimes per U.S. dollar.
The dollar rallied and Treasuries erased their decline after the International Monetary Fund predicted severe global growth repercussions if Europe fails to contain the sovereign debt crisis. IMF said the European Central Bank should lower interest rates if risks to growth persist. The ECB’s current benchmark rate is 1.5 percent.
On Wednesday the dollar climbed to a seven-month high after the Federal Open Market Committee said there are “significant downside risks” to the economic outlook.
The euro advanced versus the yen as Greece said it will accelerate budget cuts to keep emergency loans flowing.
On Thursday the euro fell to the weakest level since January versus the dollar and reached a fresh decade-low against the yen after euro-area services and manufacturing contracted this month, adding to concern the region’s debt crisis is deepening.
Australia’s dollar slid below parity with the greenback for the first time in six weeks and New Zealand’s currency slumped.
On Friday the euro rose against the dollar and yen as global equities erased losses and as investors look to Group of 20 finance ministers meeting in Washington for further action.
The yen traded at almost a post-war record high against the dollar amid speculation the Bank of Japan may intervene to curb the currency’s strength.