Thursday, 17 Dec 2009

Dollar Rises to Record Levels Against Euro and Yen

The U.S. Dollar was again the big winner in trading today, as it made record gains against both the Euro and Yen. The Euro dropped to $1.4304 at one point today, its lowest level since early September. The USD/JPY pair was trading at over 90.00, its highest level in more then a week. Analysts attributed these most recent gains to investors unloading their riskier assets which in turn boosted the value of the Dollar. While the Dollar is forecasted to remain at its current level for some time, traders should be wary of what appears to be a sure bet. The Bank of Japan is set to hold a press conference tomorrow. Any announcement made will surely create volatility in the market, which may either positively or negatively affect the Dollar.

The Dollar's increase in value over the last several days has begun to negatively impact the price of crude oil, as the commodity is not currently seen as a viable alternative to the greenback. The price of crude fell for the first time in three days, trading in the range of $70.30 a barrel before bouncing back to its current level of $73.85. Traders can expect the price to stabilize at its current rate in the days ahead, as OPEC is increasing its output in an effort to calm volatility.