Euro gains against the U.S. Dollar
The U.S. Dollar fell to its lowest price in 2½ months versus the Euro today and hovered around its weakest price versus the Japanese Yen since 1995, because investors rid themselves of the U.S. Dollar this week, as a result of the recent policy moves by the U.S. Federal Reserve.
Weak data on the German business environment briefly pushed the Euro into retreat, as it added to concerns that the economy in the Euro zone is weakening and further interest rate cuts would be needed.
But overall, the U.S Dollar extended losses, which enabled the Euro to rally by 7.5% against the U.S. Dollar so far this week, following the reduction of a key interest rate by the Federal Reserve Bank to almost zero earlier this week.
According to currency strategist, Robert Minikin of London’s Standard Chartered, the U.S. Dollar is somewhat vulnerable as a result of what the federal government is doing relative to policy terms and easing of quantitative values. He believes, nonetheless, that the U.S. Dollar will continue to be under pressure to sell.
On December 18, 2008 in early trading the Euro reached $1.4495, the highest level in three almost months. At 09:22 GMT, the Euro climbed by 0.3% and traded at $1.4445
Across the board losses put pressure on the Dollar .DXY and traded at 78.210 against a group of currencies, while the U.S. Dollar rose by 0.8% against the Japanese Yen to 87.99 Yen.