Dhaka, Bangladesh (BBN)-The US dollar (USD) fell to a record low against the Japanese Yen (JPY) and weakened against the Euro (EUR) on Friday, a weekly review report said.
The EUR gained about 0.3 percent against the USD so far in August while the greenback has lost around 1.2 percent versus the Yen.
The USD gained against the Yen on Monday, rising from a record low plumbed late Friday, as investors covered USD short positions wary that Tokyo could step into the market and with a U.S. bank detected buying.
Underscoring nervousness in the market, the Greenback briefly spiked to a session high of 77.23 Yen, but later pared some of those gains, with traders citing talk that the jump was triggered by bids from a U.S. bank.
The Swiss Franc (CHF) soared to record highs against both currencies as fear about Europe's debt crisis and the U.S. economy pushed investors toward the safe-haven currency. The JPY came under light pressure on Wednesday after Moody's cut its rating of Japan's government debt and on news that Finance Minister Yoshihiko Noda will hold a news conference on steps to curb the Yen's advance.
The Dollar held steady against the JPY on Thursday, clinging to gains made the previous day on short-covering as investors fretted that the U.S. Federal Reserve may not signal new stimulus for the economy this week.
While investors are worried that the U.S. economy may slip into recession, they are not convinced that Fed Chairman Ben Bernanke is ready to signal another bond-buying program when he addresses a central bank conference on Friday.
A profit-taking slide in gold, and a rise in U.S. Treasury yields after July U.S. durable goods orders came in stronger than expected, also helped the USD rise broadly on Wednesday.
“The EUR trimmed gains against the USD on Thursday, tracking a pullback in European shares and the single currency risks more downside if Federal Reserve President Ben Bernanke fails to signal more economic stimulus during a speech the following day,” the report added.
BBN/SSR/AD-26Aug11-4:34 pm (BST)