Gaia 10 Pointer 3 3d wallpaper free to free: FOREX - The Dollar end 2010 on Weak Note

Monday, January 3, 2011

FOREX - The Dollar end 2010 on Weak Note

The dollar fell in light volume Friday, as thin year-end markets diminished trading appetite and provided little incentive to purchase the U.S. currency on the final trading day of 2010.
A spate of figures on manufacturing, home sales and unemployment on Thursday painted an encouraging picture of a gradual U.S. economic recovery. However, the data proved insufficient to help the dollar sustain upward momentum, as it slid to a new record low against the Swiss franc at CHF0.9331.
The euro was also a beneficiary of the dollar's bearish price action. In European trading hours the euro rose to a two-week high at $1.3391, changing hands around $1.3365 in early U.S. trading and up more than 2/3 of a cent from Thursday's close.
German Chancellor Angela Merkel also lent the single currency some support after she said that the euro formed the basis of European prosperity and called for a strengthening of the currency. Some analysts say the U.S. currency's weakness in the waning days of the year may be a bearish indicator for 2011.
The yen remained buoyed by investment flows from Japanese exporters seeking to purchase yen for year-end positioning. Against Japan's currency, the dollar bought Y81.30, down from Y81.56 late Thursday and its weakest level in seven weeks. The euro changed hands around Y108.66, slightly stronger than late Thursday's Y108.33.
2011 demand
With ongoing concerns about sovereign debt, the dollar should remain supported in 2011, especially amid recent evidence that it remains a favored reserve currency for developing countries, some analysts say. On Thursday, the International Monetary Fund released a report showing that the dollar share of developing countries’ new official reserves rose in the third quarter.

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