It is surprising news learning that recently dollar had reached its best rate by raising its level against euro, British pound and Japanese yen. As you know that dollar was getting weak since several months ago and this rise means the dollar recovers from significant lost several months back.
It is reported that the rise of dollar index or quote or Comstock rose from 87.080 to 87.469 against six major currencies. Previously, the situation when US retail sales dropped in September was frustrating and it was getting more frustrating when on May the drop reached 1.2%. Many leading company like Krogers, Safeway, and Macy’s also suffer the drawback from the dollar drop.
Moreover, there was an expected increase of 0.2% happened which means to bring surprise decline to euro to return below $1.21. This fall was calculated after the common currency tested a key level at $1.2150. On Thursday, the fall occurred from $1.2116 to $1.2087.
Furthermore, speaking other currencies that are falling are the British pound and Japanese Yen. Regarding the comparison to Japanese Yen, US dollar was able to buy ¥91.65 /quotes/Comstock to ¥91.30. The day after, British Pound was falling against the dollar reached 1.3% or to $1.4521.
From the market, it is seen that Yen took advantages from investors the flee assets they carried out seemed to give more risks. The fact that dollar was previously weak compared to other major currencies had become bad news for dollar, especially when the fallback was involving European debt. It means that many investors were getting chances to see the risk when they move into assets.
The situation showed that a week ago dollar index had slipped from 88.233, whereas euro was getting higher. However RBC Capital reported that euro will be keep falling as far as $1.10 in the future years. Also, last week dollar purchased ¥91.92 and British pound purchased $1.4560. Last May, US retail sales that dropped 1.2% boosted the dollar and it was the first time occurred since September.
According to Kathy Lien, a director of currency research at GFT, many American consumers cut the expense in spite of the frequent improvement on the labor market. She added that the job pursuit was in fact insufficient to fulfill their spending, so they must learn that the quality of jobs is much more significant than the quantity.
Another opinion from an economist at RDQ Economics regarding the report of consumer sentiment index that had been increasing from 73.6 in May to 75.5 in June is that this fact provides a partial antidote to today’s retail sales report.