In forex trading market news, the dollar has had mixed results in recent trading. The Euro has gained back some of the ground it has lost due to the economic uncertainty in the some of the Euro zone countries. Also stocks have gained and this has driven down the value of the dollar. Against the Euro, the dollar fell 0.6%.

Earlier the same day it had reached a 9 month high. It fell 0.3% against the yen but gained some ground against the British pound, climbing 0.4%. The dollar index also rose 0.2%. The dollar index is a collection of major rival currencies that the dollar is measured against. As mentioned before, the dollar had been stronger.

The news that the Reserve could increase a key interest rate had sent the dollar up but then the Euro recovered and it became stronger against the dollar. Speculation is that the Euro’s recovery is only short term and in long run, the dollar will end up being stronger versus the Euro as the Eurozone is presently worse off economically than the U.S. The dollar is expected to gain in strength due to the Federal Reserve’s move to increase the discount rate , which is the that it charges banks to borrow money directly from the Fed.

This rate increase is seen as good news for the dollar and for any financial investment company that is betting on the dollar as it signals that the Federal Reserve has more confidence in the health of the US market. Additionally, the dollar is safe haven currency and as long as investors are nervous about other major market, people will put their money into the dollar.