After three days of loss suffered by the U.S. dollar, the greenback came back up and made a recovery. The decline in the currency value started after data showed that the economy was going down because of rising unemployment as well as other negative factors affecting the country.
However, as reports poured in that the economy was making recovery and getting back on track, the dollar began to show signs of improvement. Data showed that some retail sales went up by 0.6%, which is an increase of 0.5 last month. In addition, the jobless market declined to below 300,000.
The positive news made some currency strategists feel encouraged about the U.S. economy and some have even felt that the country’s economy is still the best in the world. As next year approaches, the Federal Reserve will step up its normalization rates in the country and thus will support capital spending.
Although expectations for a 4% increase in retail sales was what some analysts had in mind, still sales went up by 0.7% in November, which came as a surprise to many.
In the latest trading that took place, the dollar rose from being at a low position and went up by 1.2% to close at 119.16 yen. As the public increased its spending power and bought many consumer goods, the euro currency fell 0.5% to the tune of $1,238, thus giving traders on iForex and other forex trading sites something to think about.
As political problems in Greece came to the forefront, the euro continued to show signs of weakening further. Euro-weakening currency encouraged the dollar to dip further and gave bond owners something additional to worry about apart from the possible political upheavals taking place in Greece.
The Canadian dollar slumped to a low level, which is an all-time low in five years. The Canadian dollar went as low as $1.1551 for a U.S. dollar and eventually settled at C$1.11548.
The Australian dollar slide down to $0.8214, which has not been seen in the past 4½ years because of a statement made by the country’s Reserve Bank of Australia’s head saying that he would prefer seeing the dollar go back down to 75 U.S. cents. With proper governance on the part of the Australian government, the dollar then came back up to close at $0.8263.
The Norwegian crown skidded also to a low amount in over 10 years because of unexpected interest rates cuts. However, the dollar did rally back up to 7.3451 crowns, which is a marked high since September 2003. As for the euro, it went up to 9.1087, which is a high after 5½ years.
Mexico also had a fair deal of losses since the U.S. dollar started showing signs of decline. The U.S. dollar's counterpart, the Mexican peso, slide down to its lowest rate in 6 years to close at 14.8155 for every U.S. dollar and this happened unexpectedly overnight.
As the U.S. comes back on track, currency analysts are expecting to see foreign currencies the world over become a bit more stable as well as investor friendly. It is expected that proper precautions will be taken by the monetary authorities to ensure that the dollar stays stable.
