Although the rating agency Fitch published a report on Friday, putting several European countries into the downgrade watch list, the investors weighed the possibility back and forth, then the euro rose slightly against the dollar and held the critical position of U.S. $1.30.
The euro exchange rate against the dollar fell 2.5% this week. After the Fitch’s rating warning was published, the prospects for the euro zone might become more gloomy, and the constantly improving level of the threat had also led to the rise of the relative attractiveness of the U.S. dollar.
The dollar index which tracks the greenback against a basket of six major currencies slipped 0.07% in the day trading, to settle at 80.18 points, but climbed moren than 2% this week.
Although the CPI in November was almost flat, compared to the last month, but the core CPIn was up 0.2%, the biggest increase since October 2008. Market participants generally believed that this was a hit for the Fed to continue to introduce new massive market economic stimulus measures, and also confirmed the market’s expectations of the the upward trend of the U.S. dollar in the near future.