June 2011 Currency Exchange Rates

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The U.S. dollar gained ground against Canada’s “loonie” (0.9 percent) but depreciated against the yen (0.9 percent) and euro (0.5 percent). On a trade-weighted index basis, the dollar was unchanged against a basket of 26 currencies.
 

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Canada: The loonie gave up ground in June as the country’s rate of real GDP growth stalled in April.

Europe: Despite concerns during most of June that Greece could experience a “Lehman Brothers moment” if its parliament failed to vote for implementation of austerity measures, the euro managed to eke out modest gains against the dollar. Some attributed the euro’s appreciation to European Central Bank rate hikes and expectations that those rates will rise further. China’s expressed willingness to keep investing in Europe’s sovereign bond market is another likely explanation.

Japan: Although business sentiment has turned sharply negative since the March earthquake and tsunami, recent surveys show companies expect conditions to improve over the next three months. Officials in the government and Bank of Japan have become increasingly upbeat about the timing of the economy’s recovery, as manufacturers make quicker-than-expected progress in their recovery efforts.