Dhaka, Bangladesh (BBN) – The US Dollar (USD) saw a volatile week as initial indications from Brazil, China and Russia regarding diversification away from US assets were superseded by reiterated confidence in USD by Japanese and Russian Finance Ministers Kaoru Yosano and Alexei Kudrin later in the week.
USD touched 1.3749 against the Euro (EUR) early in the week, the highest since May, on concerns over credit conditions in Germany. Despite a decline to 1.3937, USD posted a gain of 0.6 percent over last week.
The Pound (GBP) fell against USD on rising unemployment and Bank of England meeting minutes showing uncertainty over the results of the GBP 125 billion asset purchase program. GBP fell to 1.6261 against USD for a weekly loss of 0.8 percent.
The Yen (JPY) touched a two week high of 95.52 against USD at the tail end of the week, as slower growth in inflation saw markets revise the outlook for interest rate hikes by the Federal Reserve.
JPY traded at 95.76 against USD, gaining 2.2 percent over last week.
The Swiss Franc (CHF) gained 0.1 percent against USD over the week, closing out at 1.0770.
BBN/SS/SI/AD-19June09-12:18 pm (BST)