Currency Note Worldwide

Worries over tapering undermines commodity backed currencies

By Ricky Bean January 16th, 2014

Elsewhere, the Australian dollar continued to weaken yesterday, furthering its biggest monthly drop in five years. There was anxiety in the market yesterday in anticipation of last night’s employment figures, which were expected to be poor. This resulted in traders looking to sell off the Australian dollar throughout yesterday, and after closing below a key support level, there is a chance that it could keep on dropping, to three-and-a-half year lows against its US counterpart. The Canadian dollar also struggled, touching four-year lows for the second day as speculation mounted that the central bank may signal an interest rate cut at a meeting next week to inject some life into the faltering economy. The Russian rouble and Japanese yen also lost ground yesterday. Employment figures from Australia last night and a speech by the Swiss central bank governor today will be of interest, potentially affecting the respective currencies. Get in touch with your trader for a live rate.