Currency Note Worldwide

Commodity backed currencies benefit from Federal Reserve decision

By Ricky Bean September 20th, 2013

In the aftermath of the Federal Reserve meeting, where unexpectedly  the Americans are keeping the tap of free flowing money on, we saw the markets look for more appealing yields. As stock markets rallied to year highs, gold and oil also benefited from this news. In terms of currency the commodity currencies like the South African Rand, Australian and New Zealand dollar benefited most from this as the markets moved away from safe havens to currencies with high interest rates, returning more yield. Today we have Canadian inflation figures which are expected to be low which makes the likelihood of an increase in interest rates significantly less in the short to medium term. Call now for an update.