Dollar falls for three weeks in a row against the euro
For three weeks in a row the dollar fell against the euro, which is considered as the longest series of losses for the last two months, mainly as US the lawmakers were engaged in a long drawn showdown over the budget that may possibly compel the world’s major economy into recession. The euro maintained its high levels as the finance ministers of the EU approved in principle for allocating the next aid payment to Greece. According to the head of Currency Strategy of Wells Fargo& Co., New York, this development took place in the foreign exchange markets for the past five days due to the policy developments which has been bumpier in the US, while in Europe, the policymakers took a step ahead last week. The US dollar fell 0.1 percent to $1.2986 against the euro last week, in its greatest slide ever since September 14.
Euro climbs to a high of $1.30 last week
The euro climbed above $1.30 last week on presumptions that policymakers are taking steps for progress in view of Europe’s continuing political and economic crisis. This has been further buoyed after the decision to bailout Greece amid her financial crisis. The fall in the Italian and the Spanish bond yields last week had also helped the euro rise notably.
In London the yen hit a seven-month low
In London, the yen hit a seven-month low against the dollar as well as against the euro on Friday creating losses in the midst of the assumption that Japanese monetary policy could be forcefully eased after the formation of a new government in Japan. The euro rose by 1 percent to hit 107.675 yen, which can be termed as the highest since April last. The fall in the yen has continued as there is speculation that if the opposition Liberal Democratic Party wins the elections on 16th December, this year, the Bank of Japan will ease its policy. According to the head of Hedge Fund, Forex Sales of Mizuho Corporate Bank, there are indications that the yen will surely weaken and the dollar may rise up to 90 yen by the end of March, 2013.
Crude Oil drops to its lowest level
Crude oil falls to its lowest level in more than a week as apprehension increased that talks to address the deficit in U.S. budget will fail. The decrease was as much as 2.1 percent as little progress was made over the talks in tax gains and spending cuts. However, on Friday the crude oil futures rose in the US trading markets after a report of the Energy Department concluded that the supplies had unexpectedly fallen over the last few days. On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at $88.17 a barrel during European trade, thus gaining 0.11%. There are also hopes that the decision makers will ultimately steer the economy away from a year end fiscal precipice, through combination legislations and at the same time bringing the economy back towards stability.