Top > Business > 2006 > May > 2006-05-07

Forex Currencies Exchange Looking Up for US Traders

The US dollar is trying to make its way up in the Forex currencies exchange, however, it`s not doing as well as some would hope. This should not bring any forex currencies exchange traders down though, as it is predicted that it will rise in the upcoming months. The dollar surrendered gains against major currencies on Wednesday as investors shrugged off strong U.S. economic data and focused instead on the prospect that the Federal Reserve may soon stop raising interest rates.

Even though two separate reports showed the U.S. services and manufacturing sectors were running at a robust pace, traders in the forex currencies exchange loathe to let the dollar rally too far because they have not changed their view that the Fed will soon pause in its rate-raising campaign. The dollar has been under heavy selling pressure since the Group of Seven finance chiefs` statement on currencies last month, which traders interpreted as a thinly veiled call for the dollar to weaken.

Federal Reserve Chairman Ben Bernanke then said last week that the Fed might take a time out in its rate-raising cycle. By midday in the New York forex currencies exchange, the euro was at $1.2639, up 0.2 percent on the day, bouncing back from $1.2589 after the U.S. data. The dollar was virtually flat against the yen at 113.40 yen, but earlier rose to 113.73 yen. The dollar was also down 0.2 percent against the Swiss franc at 1.2344 francs, while sterling was up 0.2 percent at $1.8453.