Currency Note Worldwide

Japanese yen gains further ground

By Smart Currency August 7th, 2013

Elsewhere yesterday, the standout performer was the Australian dollar. Early yesterday morning we saw the Reserve Bank of Australia announce an interest rate cut to an all-time low of 2.50%. The Australian dollar had been sold off heavily in anticipation of yesterday’s move and many predicted an even larger rate-cut of 0.5%; as a result, the Australian currency rebounding from 3-year lows. After a difficult day on Monday following the news that a proportion of the nation’s dairy products were contaminated, the New Zealand dollar recovered slightly, with the government stating that the economy will avoid any immediate harm resulting from the suspension of dairy sales to China and Russia. The Japanese yen also had a good day yesterday, logging gains for the third consecutive day against the US dollar as general market risk-aversion buoyed the safe-haven currency. The Canadian dollar struggled yesterday, trading near two-week lows against its US counterpart as oil, Canada’s biggest export, fell in price. There was also nervousness in the market that the nation had not created as many jobs in July as economists had forecast. Today we have influential monthly consumer inflation data out of Switzerland, as well as monthly building permit statistics and monthly business conditions out of Canada. Get in touch for the latest rates.