JAPANESE YEN WEAKENS TO 106.050 YEN AGAINST THE US DOLLAR ON REPORT OF LARGER JAPANESE STIMULUS PACKAGE. » Read More
The U.S. dollar slipped Monday against the euro but edged up against the British pound ahead of European Central Bank and Bank of England meetings later this week.
For the week ending Friday, May 9, 2008, the U.S. Markets were negative for the week, with the Dow falling more than 200 points on Wednesday, making it the biggest point drop since 4/11/08.
The dollar climbed to two-month peaks against the yen and a basket of currencies on Friday after a government report showed the U.S. economy shed just 20,000 jobs in April, fewer than economists had expected.
The dollar rose to fresh five-week highs against the euro Thursday after a survey showed a key U.S. manufacturing index for April came in slightly better than expected.
The currency trade has become increasingly popular as stock markets continue to move sideways and safe-haven government-backed bonds offer low yields.
The dollar reversed gains against the euro on Wednesday as traders concluded that the Federal Reserve's statement after its policy meeting left the door open for further interest rates cuts.
Japan's industrial production fell far more than expected in March, pushing up Japanese bond prices and stoking worries that U.S. economic woes are hitting Japanese companies.
The dollar rose to its highest against the euro in nearly a month Tuesday as expectations grew that the Federal Reserve will soon signal the end of its easing campaign, with weak European data denting interest rate sentiment in the region.
The dollar's rally stalled on Monday as investors bought euros to square up positions ahead of a key policy meeting by the U.S. central bank later this week.
For this Green Week ending, April 25, 2008 the US Markets ended the week slightly to the upside driven by a comeback in the dollar, a streak of records for crude oil, better than expected jobless claims, 26-year low consumer sentiment, surprise earnings, and a 10 point victory for Hillary Clinton in the Pennsylvania Democratic primary.
The dollar traded at three-week highs against the euro Friday, boosted by a growing view the Federal Reserve may stop cutting interest rates soon.
Japanese annual inflation hit a decade-high 1.2 percent in March, as energy prices soar, but the central bank is expected to sit tight on interest rates in the face of a soft economic outlook at home and abroad.
The dollar rose broadly Thursday after government data showed signs of resilience in the U.S. labor market, while a key consumer confidence measure in Germany plunged, weighing on the European currency.
The euro had its biggest drop against the U.S. dollar in three weeks Wednesday, as soft economic data and comment from European policy-makers indicated the weaker U.S. currency is hurting euro zone economic growth.
The euro roared to another record high Tuesday, crossing $1.60 in late afternoon trading in Europe after a pair of ECB governors said high inflation may cause the bank to raise interest rates.
The dollar fell broadly on Monday after weaker-than-expected Bank of America profits damped investors' initial optimism that companies may escape the pinch of the crisis in global credit markets.
For the week ending Friday, April 18, 2008 the US Markets ended the week rallying on earnings news. The Dow had its best week since Feb 1 and rallied 256.8 points on Wednesday and another 228.87 points on Friday, for its biggest point gains since April 1st.
The dollar touched a seven-week high against the yen and pulled further away from a record low versus the euro Friday after Citigroup earnings contained less damage from the crisis in credit markets than some had expected.
Bank of Japan Governor Masaaki Shirakawa said on Friday that the economy was slowing due to rising energy and raw materials costs, but he maintained that it would likely pick up gradually.
The euro retreated from a record high against the dollar in choppy trade Thursday after a top euro zone official called recent euro appreciation "undesirable."