Australia, New Zealand currencies stronger

Story link: Australia, New Zealand currencies stronger

The US dollar was weaker during the trading day on Monday but managed to come back from record lows against both the euro and sterling.

The US currency dropped to a new record low against the euro on Monday at $1.3844 before it managed to recover to stand nearly even at $1.3825 versus the shared currency.

Sterling also hit a new high versus the greenback at $2.0603 before settling back to $2.0580, still a gain of 0.1 percent on the US currency.

The New Zealand dollar also rose in relation to the US dollar, adding 0.7 percent to $0.8030, the highest it has been since the kiwi was allowed to float freely in 1985, while the Australian dollar added 0.4 percent to $0.8835 versus the greenback.

The New Zealand currency was supported by predictions that the central bank there will raise interest rates when it meets on Thursday, while the Australian dollar was helped by inflation data that had analysts also looking for an interest rate increase there.

The yen had an up and down day on poll results that look bad for Japan’s ruling party in parliamentary elections scheduled for this weekend, but it later settled at ¥121.35 versus the greenback, little changed from the previous session.

The yen also traded even versus the euro, at ¥167.60.

The Turkish lira added 1.8 percent versus the US dollar to TL1.2480 in the wake of elections over the weekend where the ruling party came out the winner.