By: Barbara Zigah
The U.S. Dollar rose to a 6-wee peak versus the common currency Euro in London trading as continuing concerns over Eurozone debt are shaking market confidence. As reported at 9:01 a.m. (GMT), the greenback rose .4%, trading at $1.3620, up off of Friday’s high of $1.3573, which until then had been the highest trading price in more than 6 weeks.
Also helping the Dollar is improved 10-year U.S. Treasury instrument yields, which hit a 2-month peak at 2.84%. Some market players are attributing the higher yield to a recent report in the Wall Street Journal which alleged that several conservative economists plan to in initiate a campaign aimed at getting the Federal Reserve to withdraw its QE plan of purchasing $600 billion in U.S. Treasury instruments.
In the Eurozone, investors continue to worry about the economic survival of Ireland, and although the government has not asked for debt assistance from the European Union or the IMF, they haven’t yet entirely ruled out that possibility. Some analysts are encouraged by word from the E.U. that, should Dublin ask for help, a rescue package of approximately €90 billion will be made available. Some analysts suggest that the Euro will continue to be vulnerable so long as Ireland debt worries persist.