Dhaka, Bangladesh (BBN) – The US dollar pared back its losses from previous weeks on increased risk aversion in the markets following the US Federal Reserve’s concerns about US economic recovery.
The Euro (EUR) opened the week’s trading at 1.3182 against the US$ and fell to a three-week low on Thursday at US$ 1.2807, after weak Greek data highlighted the problems facing some euro zone economies.
At the end of the week, the EUR was trading around 1.2815 levels against the Greenback.
On the other hand, the Japanese Yen (JPY) continued to strengthen this week, boosted by the increased safe-haven buying of the currency fuelled by news of negative US economic outlook from the Fed and news of China’s shrinking industrial output hinting at a sustained global slowdown.
The JPY reached a fifteen-year high against the Greenback on Wednesday at JPY 84.72 after opening the week’s trading at JPY 85.83.
However, US$ pared some of its losses as a stronger JPY stirred worries that Japanese authorities could intervene to rein in gains in the Japanese currency. At the end of the week the JPY was trading around JPY 85.47 levels, according to reports.
BBN/SI/AD-13Aug10-2:42 pm (BST)