Currency Note Worldwide

China’s increased borrowing costs hurt commodity backed currencies

By Ricky Bean October 24th, 2013

Elsewhere, as expected the Bank of Canada kept interest rates unchanged at 1% for October. However, despite the recent rhetoric from the BoC indicating that a rate hike may be imminent, the central bank suggested that the “monetary policy stimulus currently in place remains appropriate”. As a result the Canadian dollar fell across the board. Elsewhere the Japanese yen gained against all of its main counterparts on the back of an increase in borrowing costs for Chinese banks. Investors flocked towards the Japanese currency with the perception of it being a safer bet. This in turn meant that both the Australian and New Zealand dollar were hit hard as demand for higher yielding investments diminished considerably. Overnight we saw the release of trade balance data from New Zealand whilst Chinese manufacturing indices came out above market estimates. Contact your trader for live pricing on your currency pair.