Dollar in a stronger position against Euro

Dollar in a stronger position against Euro

Looks like the American economy is finally picking up and standing against Euro. It has risen to its 13 1/2-month highs against the euro on Monday in Asian Trading. This is said to be happening due to higher U.S. interest rates and optimism about the U.S. economy. Yen however continued its stronger position though the dollar was still hovering close to its best position in many months.

The dollar’s improvement drove the euro down to $1.1905 from $1.1940 late Friday in New York. It has been the worst position for the Euro in more than a year. In this year itself, it has taken a 12% beating compared to the American Dollar. It was doing 111.73 yen compared to 111.75 late Friday in New York and just about touched the 10 month high of 111.79 yen.

The U.S. Federal Reserve’s decision taken on Thursday to raise a benchmark interest rate to 3.25 percent, increasing the allure of U.S. fixed-income assets has led to all these new happenings. Dollar has been improving since than and is expected to do so in the near future. Also helping it is that the interest rate outlook for the European Central Bank is unclear to the market.

Today happens to be the independence day in America and thus a national level holiday. NASA is also scheduled to hit the comet Tempel 1 through its Deep Impact spacecraft. NASA has confirmed that Space Shuttle is good to go to space this month. Looks like it is interesting time for the people of America!