By: Barbara Zigah
With evidence suggesting that the United States is finally on the path to sustainable economic recovery, the U.S. Dollar held firm against major currencies in Asian trading today.
As reported at 2:28 p.m. (SGT) in Singapore, the U.S. Dollar Index, a gauge of the greenback’s strength versus a weighted basket of major foreign currencies, traded at 79.586 .DXY, a .2% rise; so far this week, the Index has gained .6%, on track to recoup some of last week’s 1.8% decline.
Yesterday, the U.S. Census Bureau reported that factory orders unexpectedly rose in November by .7%, yet a consensus of economists had predicted a .1% decline.
The common currency Euro moved lower against the greenback, trading at $1.3272, a decline of .3%. The Australian Dollar also moved .3% lower against the U.S. Dollar, trading at $1.0020 and extending yesterday’s 1.2% loss. Analysts attribute the Aussie’s decline to a correction in commodity prices; both gold and oil lost more than 2% in yesterday’s trading.
Further affecting the Aussie are the widespread floods which investors worry will take a toll on coal production, which is Australia’s largest export. Some analysts are predicting that the Aussie may slip below parity by the end of this week, given the external pressures on the currency.