The US Dollar Index opened today’s session on a stall, but now momentum is building and the dollar is rising once again as Europe’s debt repair hopes start to fade away, just hours after the world markets opened in positive territory.<\/p>\n
Latest Dollar Index Rate<\/strong><\/p>\n The ICE US Dollar Index, which tracks the US dollar against six major world currencies was trading at 81.705 – 09.46 GMT today, from the session high of 81.795 and the opening rate of 81.295. The US dollar was exchanging 0.79130 euro<\/a> as of 10.02 GMT, or 0.04 percent higher.<\/p>\n Euro Debt Concerns<\/strong><\/p>\n Of course the big news concerning the currency markets, the dollar and the euro today is the outcome of the Greek elections. However interest rates for Spain and Italy are once again being watched by investors and traders as Spain’s rate moves back over 7 percent, widely seen as a sign the country will need a full blown bailout any time soon.<\/p>\n The Pain in Spain<\/strong><\/p>\n Spanish markets failed to benefit from any improved sentiment generated by a victory for pro-bailout parties in Greece Monday as its stock markets fell and its borrowing costs increased to dangerously high levels.<\/p>\n About hour into Monday morning\u2019s trading session saw the Ibex-35 stock index down about 1 per cent on Friday\u2019s close. It had opened about 1.5 percent higher.<\/p>\n The interest rate Spanish 10 year bonds, a benchmark of market confidence in a country\u2019s ability to pay down its debt was first down nearly 7 basis points at 6.86 percent but has since risen and was at back over 7 percent.<\/p>\n Greece Austerity<\/strong><\/p>\n Global markets are reacting to the narrow victory by Greek conservatives who favor upholding an austerity program that their recession mired country entered into in exchange for a financial bailout from international lenders.<\/p>\n After five years of deep recession, crushed under its huge public debt and facing rising social tensions, Greece faces a daunting struggle to restore its battered economy. Plus, the new government may face a renewed wave of protests once it takes office.<\/p>\n And Italy is again flirting with economic disaster, Prime Minister Mario Monti said on Saturday, as crowds massed in sporadically violent protest at his austerity programme.<\/p>\n Problems for Greece, Spain and now Italy should weigh very heavily on the euro currency against the US dollar, affecting currency and commodity markets as oil and gold are both traded in the American greenback.<\/p>\n<\/p>\n