By: Barbara Zigah
The U.S. Dollar recovered slightly in London trading today following last week’s decline when Chinese officials renewed their plea for an ending to the Dollar’s stronghold as the single reserve currency. China is believed to hold nearly $2 trillion in cash reserves, the majority of which is concentrated in the U.S. Dollar.
As reported at 9:08 a.m. (BST) in London, the U.S. Dollar Index, which is a measure of the Dollar’s performance versus six other major currencies, traded at 80.049 .DXY, an increase of .22% from last week’s low struck on Friday. Against the U.S. Dollar the Euro traded at $1.4024, a loss of .17%; meanwhile, the Japanese Yen dropped to 95.42 Yen, a loss of .26%. Trading is somewhat subdued globally, as the second quarter comes to a close and in advance of the trading slowdown expected as Americans and Europeans celebrate their summer holidays.
In Basel, Switzerland this weekend, a meeting of key central bank ministers discussed the possibility of a currency arrangement that would permit import and export traders to settle their transactions in respective local currencies, thus avoiding the U.S. Dollar. Emerging markets continue to put pressure on central banks for an alternative to the Greenback as reserve currency, contributing to the Dollar’s weakness in the past few weeks.
U.S. Dollar has Broad Recovery in London Trading
Barbara Zigah
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About Barbara Zigah
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.