Dhaka, Bangladesh (BBN)- The US Dollar (USD) weakened to 1.4347 against the Euro (EUR) initially as US manufacturing and housing reports signaled economic recovery.
However the Greenback strengthened on conjecture that US based financial institutions would report losses and restriction in Chinese production of steel and cement to curb overcapacity will hamper recovery.
The British Pound (GBP) fell during the week amid concern that UK’s economic recovery will be time consuming compared to the Euro Region. Low UK housing prices and Bank of England’s Deputy Governor’s comment that their asset purchase program is moderately successful weakened GBP to 1.6195 against USD.
The Japanese Yen (JPY) fell earlier in the week due to economic recovery expectations. JPY rebounded to 133.37 against Euro (EUR) on conjecture that surge in equity prices were exaggerated, thus discouraging investment in higher yielding assets.
BBN/SS/SI/AD-28August09-6:47 pm (BST)