The US Dollar Exchange Rate was trading in the region of 0.7480 against the Euro as of 15:35 pm GMT
The tornado whipping its way through Southern Mississippi, the Mardi Gras shooting in New Orleans and the manhunt for a fugitive ex-LA cop are some of the headlines dominating US news today.
But when it comes to economics, news has been rather thin on the ground. With Asian markets closed due to national holidays and US economic data in short supply, movement in the US Dollar has been limited to global developments, but the currency has still experienced fluctuations.
Last Friday the ‘Greenback’ fell by 1.6 per cent against the Japanese Yen as the concerns that the Asian currency had weakened too quickly caused it to broadly strengthen.
However, the US Dollar pared these losses today as the Yen dropped to within touching distance of an almost three-year low against its American rival.
The Yen’s declines were triggered by comments made by Japanese Economy Minister Akira Amari. The official asserted that the government should stick to its stock-boosting methods, policies which could cause further depreciation in the Yen.
Meanwhile, Haruhiko Kuroda – a candidate for the top position at the Japanese Central Bank – intimated that he was in favour of additional fiscal stimulus.
These statements caused the Yen to post losses against the Euro for the first time in four days and allowed the US Dollar to gain against the Asian currency by 0.7 per cent. The US Dollar also posted modest advances against a broadly softening British Pound following the release of disappointing UK news.
Although the lack of significant economic news from the US did temper ‘Greenback’ movement today the currency could still experience fluctuations in the hours ahead after Federal Open Market Committee board member Janet Yellen speaks out on the US economy.
It is believed that Yellen may intimate that in light of the recent signs of US economic recovery she no longer sees the scope for initiating additional quantitative easing, and some industry experts have predicted that the American Dollar could record new monthly highs as a result of an increasing number of Fed officials adopting a more hawkish approach to fiscal policy.
The Federal Open Market Committee may even begin to cautiously discuss a possible exit strategy if growth and inflation outlooks continue to improve.
In the days ahead several key pieces of economic news for the US could cause volatility in the nation’s currency, including tomorrow’s monthly budget statement, Wednesday’s advance retail sales, Thursday’s initial jobless claims and Friday’s G20 meeting of Finance ministers and central bank governors in Russia.
Current US Dollar Exchange Rates
The US Dollar to Euro exchange rate is currently trading at 0.7480
The US Dollar to Pound Sterling exchange rate is currently trading at 0.6376
The US Dollar to Canadian Dollar exchange rate is currently trading at 1.0069
The US Dollar to Australian Dollar exchange rate is currently trading at 0.9738
The US Dollar to New Zealand Dollar exchange rate is currently trading at 1.2021
The US Dollar to Emirati Dirham exchange rate is currently trading at 3.6729
The US Dollar to Swiss Franc is currently trading at 0.9195
The US Dollar to Japanese Yen exchange rate is currently trading at 93.3300
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