Daily Forex News
 
Daily World Currencies News from London
Friday 30th of July 2010
October 9, 2008

Yen lower as rate cuts take hold

Story link: Yen lower as rate cuts take hold

Yen lower as rate cuts take hold

The Japanese yen reversed recent gains and weakened versus the US dollar, the euro, the Australian dollar and the New Zealand dollar Thursday after interest in carry trades revived on interest rate cuts from several Western and Asian central banks yesterday and today.

At right around noon in New York the yen traded at ¥100.68 to the greenback while it was at ¥137.3425 to the euro and traded at ¥70.5365 to the Australian dollar and at ¥62.1 to the New Zealand dollar.

The Aussie and the kiwi, meanwhile, also gained on the US dollar, with the Aussie especially helped by gains in employment levels in Australia.

In midday trade in New York, the Australian dollar was worth 70.06 cents US while the New Zealand dollar cost 61.70 cents US.

The Brazilian real was helped by the interest rate cuts over the past two days, an easing of rules on reserve requirements for banks, and after Brazil’s central bank sold the US dollar for the first time in five years.

The real traded at R$2.2090 to the dollar in New York.

The South African rand also gained on the US dollar after its central bank held interest rates steady at 12 percent on the risk of inflation, with the rand lately trading at R9.0455 to the US currency.

On the other hand, the Canadian dollar weakened against the greenback as the price of oil continued to decline, with the loonie trading at C$1.1470 to the US dollar in midday trade.

Trade in the Icelandic krona was halted after the government there took over Kaupthing Bank, the nation’s largest lender after the takeovers earlier in the week of two other Icelandic lenders earlier in the week.

In addition, Sedlabanki, Iceland’s central bank, abandoned its currency’s peg to the euro after just a day while Fitch Ratings cut Iceland’s foreign and local-currency debt ratings and Moody’s Investors Service cut the government’s debt rating yesterday.

The krona last traded at kr340 to the euro.

 

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