By: Barbara Zigah
The U.S. Dollar Index slid to a 1-week low in Asian trading today as investor concerns over escalating Middle East tensions, as well as lackluster economic data from the U.S., held back the recent rise in U.S. Treasury bond yields. Last weeks’ resignation of the Egyptian President only temporarily quelled concerns; this week investors are worried that entire region could de-stabilize while the Egyptian government is transitioning, a sentiment which pushed the U.S. Dollar lower. As reported at 12:36 p.m. (JST) in Tokyo, the U.S. Dollar Index traded at 78.144 .DXY, a decline of .1% but rebounding slightly form the earlier low of 78.048 .DXY, which was the lowest point in a week.
Meanwhile, the common currency Euro gained .15% against the U.S. Dollar, trading at $1.3558 and adding on to yesterday’s .5% gains; last week, the Euro struck a 3-week low at $1.3428. Some market players expect to meet resistance at around $1.3630 to $1.3645.
The Swiss Franc, which has been under significant selling pressure lately, traded close to a 1-week high against the greenback and the Euro. Versus the U.S. Dollar it traded at 0.9588 Swiss Francs, off from the low of 0.9554 Swiss Francs struck yesterday, and against the Euro was at 1.3025 Swiss Francs, within striking distance of the 1-week trough of 1.2974, struck yesterday.