US dollar stronger on Monday

| July 24, 2006 | 0 Comments

The US dollar strengthened Monday, but analysts disagreed on exactly why the greenback notched gains after three days of declines. Some called the gains a correction, while others felt it had to do with speculators who are betting that China will use the 1-year anniversary of the revaluation of the renminbi as an excuse to revalue the Chinese currency again.

Whatever the reason, the US dollar added 0.4 percent to a three-month high of C$1.1418 in relation to the Canadian dollar, while ti gained 0.5 percent versus both the Japanese yen and sterling, to ¥116.67 and $1.8491 respectively. The greenback was up 0.6 percent to $1.2633 against the euro. Meanwhile, in China, the renminbi was down fractionally to Rmb 7.9871 to the US dollar.

The Swiss franc weakened during the day. It dropped 0.2 percent versus the euro to SFr1.5744, while it fell 0.3 percent against sterling to a one-year low of SFr2.3050. The Swiss currency was down 0.4 percent to ¥93.56 in relation to the yen and fell 0.9 percent to SFr1.2463 versus the US dollar.

In Hungary, the forint added 1,.6 percent to Ft273.44 against the euro in the wake of a hike in the Hugnarian interest rate to 6.75 percent. Elsewhere, the Russian rouble fell 0.2 percent to Rbs26.922 versus the US dollar after Russian President Vladimir Putin questioned the strength of his nation’s currency.

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