Forex markets move on weakening dollar

Story link: Forex markets move on weakening dollar

The Norwegian krone was up 0.2 percent in relation to the euro to NKr7.8573 on Tuesday. That figure was a new 2-year high as well as a gain of 3.4 percent since May 20 for the Norwegian currency.

The newest gains came on above-expected first-quarter GDP growth of 0.9 percent and on a rise of 2.2 percent in April’s manufacturing output.

The yen was also up in relation to the euro, to ¥130.69, mostly due to continuing talk about a possible revaluation of Chinese currency before of a meeting of the G7 finance ministers this weekend. China has been invited to the meeting.

Sterling also was up against the euro, to £0.6700.

Meanwhile, the US dollar weakened against several other currencies, partly as a result of profit-taking but also after comments made by Alan Greenspan on Monday night in which he downplayed the fact that long-term bond yields have been falling while short-term yields are going up. The dollar fell 0.2 percent in relation to the yen, to ¥106.65.

It also was down against sterling, to 0.4 percent to $1.8313. The dollar was little changed in relation to the euro at $1.2269.

Meanwhile, the Australian dollar rose 0.6 percent against the US dollar, to $0.7694, while the New Zealand dollar gained 0.8 percent in relation to the US dollar, to $0.7142, and the South African rand was also up 0.8 percent against the US dollar, to R6.6525.