The US dollar hit a new month high on Tuesday as Euro is losing ground. The lowest Euro value was registered this Tuesday. The causes of the decrease can be traced to Greece’s financial crisis and growing opposition to austerity measures from Spain as seen in the local election’s results this Sunday.
The region’s debt and worsening financial situation affects Europe’s market as stock markets fell between 0.5-1.3 percent.
Switzerland’s 10 year old bond yields go in the red for the first time this month as Spanish Portuguese and Greek yield bonds entered a round of increased selling.
The dollar also benefited on behalf of this trend, as the the US currency gained new momentum and rose to a new monthly high. Federal Reserve chief Janet Yellen, commented on this trend:
“There is good reason for continued dollar strength but if it goes too quickly we will see the same thing as happened in March and early April because there will be the question about what effect it will have (on the U.S. economy).”
Janet Yellen believes that the dollar’s strenght show signs of an improving economy.
The Asian economies have also benefited from Euro’s falling. Markets in Hing Kong and Japan registered an overnight improvement as shares increased with 0.12, reversing the negative grow.
Us investigators await further news about the economy’s strength and consumer confidence.
