US Dollar weakens against world currencies

US Dollar weakens against world currencies

Story link: US Dollar weakens against world currencies

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Despite a spike of 0.7 percent against the euro upon the release of US trade data on Friday, the US dollar weakened this week against most major world currencies.

The dollar lost 0.7 percent over all this week in relation to the euro, to $1.2424, fell 2.2 percent to ¥109.51 against the yen, declined 2.1 percent to $1.8148 in relation to sterling, and dropped 1.1 percent to SFr1.2492 against the Swiss franc.

The greenback also fell against the Canadian dollar, by 1.8 percent to C$1.1947, the lowest this year.

Analysts feel that the dollar has been helped as much as it will be by hikes in the US interest rate and will now be driven by US deficits.

In contrast, the yen gained strength during the week on data that seems to indicate that the recovery of the

Japanese economy is the real thing as well as on hopes that Prime Minister Junichiro Koizumi will be returned to office in snap elections on September 11.

The yen gained 1.8 percent in relation to the euro during the week, to ¥136.08. Sterling also advanced in relation to the euro this week, gaining 1.5 percent to stand at £0.6844.