Dollar Weakens On the Euro and Yen

The U.S. dollar weakened against a number of major world currencies. As evidence, the Dollar Index is used to measure the movement of the dollar against six currencies into U.S. trading partner, fell by 0.7 percent to 75.423. Even in previous transactions, the dollar index was inundated up to 1 percent, which is the biggest daily decline since August 15 last.

On Wednesday (09/07/2011) at 17:00 New York time, the euro rose 0.7 percent to 1.4098 U.S. dollars. The euro is also strong 0.2 percent against the yen to 108.90 yen. Meanwhile, the dollar fell 0.5 percent to 77.26 yen.

The dollar came after the Federal Reserve's Beige Book survey results reveal. The survey results indicate a slowing U.S. economy in a number of areas. "Activity in the economy to grow slower, although a number of districts indicate a variety of growth," the Fed Beige Book survey released yesterday in Washington.

Conversely, movement of the mighty euro over the dollar after the Italian Prime Minister Silvio Berlusconi won a vote of confidence on saving policies. Thus, there is progress in the handling of the debt crisis in the European region.

"Berlusconi's support for the austerity package he proposed, thus boosting the movement of the euro over the dollar," said Kathy Lien, director of research online currency trader GFT Forex in New York.