Euro gains on US dollar, sterling but declines versus zloty

Euro gains on US dollar, sterling but declines versus zloty

Story link: Euro gains on US dollar, sterling but declines versus zloty

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The yen weakened on Thursday after equities markets in the Asian region returned to gains after widespread declines on Wednesday. Falling markets yesterday, combined with nervousness over the ongoing standoff between Iran and the UK over the capture of 15 British sailors last week led to an exodus from risk that had helped the yen to gains. But the return to positive territory eased investors minds and hurt the yen.

By mid-afternoon in New York, the yen had dropped 0.9 percent against both the US dollar and sterling, to ¥117.90 and ¥231.40 respectively, while it was 1 percent lower versus the euro, to ¥157.25. The New Zealand and Australian dollars both gained on the yen, with the Aussie adding 1 percent to ¥95.17, while the New Zealand currency was 1.2 percent higher to ¥84.12.

The euro was stronger against both the US dollar and sterling, helped by new figures showing that Germany’s unemployment rate dropped more than had been expected in March. The shared currency gained 0.1 percent on sterling, to £0.6793, while it added 0.2 percent to $1.3340 in relation to the greenback. There were also reports that French unemployment was at its lowest level in 24 years in February. The euro did, however, suffer versus the Polish zloty, which added 0.5 percent to 3.865 zlotys to the euro. The zloty’s gain came when Standard & Poor’s upped its rating on Poland’s foreign currency debt.

Sterling gained 0.1 percent on the US dollar, to $1.9630 on good news concerning retail sales from the Confederation of British Industry and on a report from the Bank of England showing that mortgage lending was still strong.

The Swiss franc was 0.2 percent lower versus both the US dollar and the euro, to SFr1.2180 and SFr1.6240 respectively. The declines came after the Swiss National Bank said that economic production will fall toward non-inflationary levels.