Greenback rises versus Single Currency

11-13-2009 08:29

The Greenback gained versus Europe's Single Common Currency, in anticipation of crucial US figures, as Timothy Geithner, the US Secretary of the Treasury, stated that a strong Dollar was “extremely important” for the North American nation. He also emphasized the importance of the American economy and the US Dollar with relation to the global economy.

Volatile equity markets

The Euro dropped to 1.4956 Dollars during late morning trade in London, while it traded at 1.4978 Dollars at the end of today’s trading session in New York.The US Dollar dipped to 89.79 Yen, compared with 89.84 late on Wednesday.Gold prices reached a record high as they surpassed 1,123 Dollars per ounce during the initial trading deals this Thursday, after trade was boosted by volatile equity markets and the low rate of the US Dollar, according to currency analysts.

On the London Bullion Market, a wholesale market for the trading of gold and silver, gold rose to 1,123.38 Dollars an ounce. Jane Foley, research director at Forex.com, commented: “The EUR/ USD pair has dropped further during the European trading session, which is in accordance with the weaker sentiment on stock markets. Obviously, Geithner used the occasion to reaffirm the American Treasury's obligation regarding a strong Dollar policy.”

Restore fiscal balance

The US Treasury Secretary was one of the speakers at the Asia-Pacific Economic Cooperation (APEC) group meeting. “A strong Greenback is extremely crucial for the US, while it is also important that we maintain confidence in the durability and strength of our national economy, given the fact that the economic expansion improves, to restore fiscal balance. We should also sustain the focus on progressing our fundamentals,” he said.
“That will be a crucial element of the US economic improvement,” Geithner added.
He also affirmed the significance of the American economy and the US Dollar, “we are aware of our special responsibility, given the fact that the US is an engine for the international economy regarding strength and stability”.

Better insight

Currency traders were in an agony of doubt in anticipation of crucial US jobless claims figures. James Hughes, market analyst at CMC Markets, commented: “The release of the week-by-week jobless claims and the Wal-Mart data will give a better insight into the US consumer minds.”