Saturday, March 22, 2008

Dollar Strengthens Against Euro, Yen for First Time in a Month

It's been a month since the U.S. dollar increased against the euro and yen for the week, as the Federal Reserve has battled to increase confidence in the economy and financial institutions in the country.

Along with cutting interest rates, the Fed also offered credit to securities firms, which was a first, as well as allowing a more extensive range of things they'll accept for collateral on loans.

Against the euro, the U.S. dollar increased to $1.5431, up from its March 14 price of $1.5674. It's been over a month since the dollar has reached that level. Against the yen, the dollar reached 99.58, a 1.5 percent increase from its March 14 finish also.

The dollar also gained against the pound, which fell to $1.9818; while it also increased against the Swiss franc, ending at 1.0093.

It also surged against the Norwegian kroner, buying 5.2616, and also with the Australian dollar, which plunged to a five-week low of 90.21 U.S. cents; falling by 3.8 percent.

For the week, the U.S. Dollar Index gained 1.5 percent to 72.71. On March 17 it had fallen to an all-time low of 70.698.

After the commodities fell this week, others believe there will also be drop in the commodity currency market also.