FOREX: US Dollar finishes week higher against major currencies




The U.S. dollar traded higher in forex trading this week against the other major currencies as the American currency was the beneficiary of risk aversion. Market jitters were triggered this week by a military clash between North and South Korea as well as debt fears in the Eurozone, particularly in Ireland, Spain and Portugal.
The dollar rode the risk aversion higher versus the euro for a third straight week as the euro (EUR/USD pair) fell to its lowest exchange rate since September 21st at the 1.302 level. The dollar also increased for the week versus the Swiss franc, British pound sterling, Canadian dollar and New Zealand dollar, Australian dollar and the Japanese yen.

The largest gain for the dollar was against the euro with a 431 pip increase for the week followed by a 391 pip advance versus the British pound sterling (see chart). The dollar also rose by over 200 pips against the Australian dollar and the New Zealand dollar.

The dollar gained ground for a third straight week against the British pound, the Canadian dollar and the Swiss franc.

The Japanese yen, meanwhile, lost ground for the fourth straight week versus the U.S. dollar with an approximate 48 pip shortfall. The USD/JPY pair now trades at the 84.02 exchange rate after declining to a low at the 80.22 exchange rate on October 31st.