Bank moves affect currencies markets on week

Bank moves affect currencies markets on week

Story link: Bank moves affect currencies markets on week

TAGS:

The New Zealand dollar was lifted by interest rates and carry trades activity this week despite rumored attempts by the Reserve Bank of New Zealand to intervene early in the week to slow its ascent. The kiwi added 1.6 percent to $0.7680 versus the US dollar, while it gained 2.1 percent versus the yen, to ¥95.02.

There were also gains for the Swedish krona, the Swiss franc, the Taiwanese dollar over the week. After the central bank in Taiwan raised interest rates to 3.125 percent, the currency there added 1.2 percent to T$32.75 in relation to the US dollar.

Meanwhile, the Swiss franc added 0.3 percent to SFr1.6560 versus the euro and 0.7 percent to SFr1.2320 against the greenback after the Swiss National Bank raised short-term interest rates.

Sweden’s central bank also raised interest rates, to 3.5 percent, sending the krona up 1.8 percent versus the euro to SKr9.2440 and 2.2 percent higher to SKr6.780 against the US dollar.

The US dollar was 0.4 percent weaker in relation to the euro by the end of the week, to $1.3430 and fell 1.1 percent to $1.9970 versus sterling after the Bank of England released minutes from this month’s Monetary Policy Committee meeting. However, the pound was down 0.7 percent to £0.6728 in relation to the euro.

The Japanese yen, meanwhile, weakened even more as investors continued to sell the currency to finance risky carry trades. The yen dropped 0.5 percent over the week to ¥124 versus the greenback. It fell 1 percent to ¥166.70 in relation to the euro, and was 1.6 percent lower to ¥247.70 against sterling.