Dollar steady as euro falls again

Story link: Dollar steady as euro falls again

The US dollar saw little change against the yen on Thursday, to sit at ¥109.07. It was also little changed in relation to sterling at $1.8231. It also was down against the Australian and New Zealand dollars, hit one month lows against both currencies. It fell 0.3 percent to $0.7722in relation to the Australian dollar, and sat at $0.7152 in relation the New Zealand dollar.

The euro lost value again on Thursday as it fell 0.2 percent to $1.2094 in relation to the US dollar. The shared currency hit another 10-month low against sterling at £0.6632. The euro has declined 6.1 percent against the Australian dollar in the past four weeks to a four-year low of A$1.5647; 0.6 percent of that decline came on Wednesday. The weakness of the euro against the Australian dollar is considered to be a sign that speculators are using the euro to fund carry trades instead of using the US dollar for that purpose.

The Swiss franc also fell in relation to the Australian dollar on Wednesday, 0.5 percent to SFr0.9830, and has lost 6.4 percent against the Australian currency in the past month.

BNP Paribas recommended on Thursday that its clients use the euro and the Swiss franc as funding currencies against the New Zealand and Australian dollars as well as against the Turkish lira, the Brazilian real and the US dollar.