U.S. Dollar falls against Euro in Light Holiday Trading

The U.S Dollar dropped versus the Euro and a group of currencies today as investors awaited a series of economic data from the United States, which will be released later in the day, in order to find clues on the extent of the long recession.

Shares in Asia dropped after shares on Wall Street fell as it became more evident that the recession will continues to eat into corporate profits.  Trading activity in the Japanese currency market remained subdued due to a public holiday.  The U.S. Dollar held firm versus the Japanese Yen on deepening worries over the Japanese economy after the release of more gloomy economic data and the worsening economic outlook articulated by Japan’s central bank.

According to a currency trader at a European Bank in Asia, the Euro will probably be underpinned near $1.35 and trading levels are not expected to move drastically in any direction in the near future.  The Euro rose by 0.3% against the U.S. Dollar and traded at $1.3985, and also rose by 0.3% against the Japanese Yen and traded at 126.22 Yen.  The dollar index, which gauges the performance of the U.S. Dollar against six major currencies, fell by 0.1% to 81.080 .DXY.