By: Barbara Zigah
The U.S. Dollar Index struck a new 10-month low in Tokyo trading, continuing to be put under selling pressure, this time pushed lower by the policy tightening actions of the Monetary Authority of Singapore. As reported at 12:37 p.m. (JST) in Tokyo, the U.S. Dollar Index was trading at 76.519. DXY, a level not seen since January 2010.
The Monetary Authority of Singapore, by this action, effectively helped to weaken the U.S. Dollar further. Trading against the U.S. unit was lower against most currencies. Against the Singapore Dollar, the greenback slipped to S$1.2937, a decline of .7%, rebounding from S$1.2888, a record low.
Versus the Euro, the U.S. Dollar slipped .9%, trading at $1.4086; while against the Japanese yen, the dollar struck a new 15-year low, trading at 81.28 Yen. Versus the Australian Dollar, the greenback traded at $0.9983, the lowest trade in 28 years and closing in on parity with the Aussie.
Some market players believe that the decline of the U.S. Dollar’s will soon be over, as the markets have already factored in the prospect of future quantitative easing measures by the Federal Reserve, as a foregone conclusion.
One foreign securities manager in Japan noted that speculators may begin closing their short positions in the greenback ahead of the November 3rd FOMC meeting.