The US Dollar has strengthened against the majority of its peers and is heading for its biggest weekly gain in two months against the Japanese Yen, after having soared after Federal Reserve Governor Ben Bernanke made the case for monetary stimulus to be withdrawn as the US economy improves.
The US Dollar/Pound Sterling Exchange Rate is currently in the region of 0.6458
Against all of its 16 major peers the ‘Greenback’ is set to make weekly gains as data due next week is expected to show that US home prices and durable goods orders increased.
The Dollar index is up 1.8% on last week and is well above the level of 80.55 it recorded on Wednesday.
“A broad-based U.S. Dollar rally is closer at hand with the Fed expected to slow asset purchases in September 2013. The moves thus far have been against high carry/emerging-market currencies, and we see this broadening out to include low-yielding currencies” as the second half gets under way, said Jose Wynne a strategist at Barclays.
Against the Euro the Dollar could make large gains as once more Greece enters the spotlight. With the Greek government in disarray at the departure of the Democratic Left from the coalition, concerns are rising that the country could call snap elections.
Greek turmoil is unlikely to put significant pressure on the Euro, according to Elsa Lignos, currency strategist at RBC Capital Markets.
“The government still has enough MPs for an outright majority (though its hold on power is now more precarious). With tolerance for Euro-zone negative news at multiyear highs, we would expect limited market reaction unless the government actually falls and elections renew fears of a Euro exit.” she said.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6458
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7567
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0818
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.8177
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0371
(Correct as of 15:05 pm GMT)
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