The US Dollar managed to recoup some of its losses against the Euro, Swiss Franc and Japanese Yen as calm returned to the markets on Wednesday following Tuesday’s rout for the ‘greenback’.
Tuesday saw the US Dollar make its biggest one-day loss against the Yen in more than three years after it slumped to as low as ¥95.94. The move came after the Bank of Japan disappointed the markets by not announcing further stimulus measures and as speculation over whether the Federal Reserve will choose to start to slow down its pace of asset purchases. Investors sought shelter in the safe haven Yen and other currencies such as the Euro and Sterling as a result.
Against the Euro the Dollar fell close to a four-month low before recovering its losses as weakness out of the Eurozone and troubling news from Greece weighed upon the single currency. The Swiss franc also reversed Tuesday’s climb against the Dollar, which was fuelled by safe-haven inflows.
Commodity based and emerging currencies have also seen a recovery after taking a beating on Tuesday. The extreme sell-off of the Indian Rupee, South African Rand, the Turkish Lira and Mexican Peso were partially reversed. The dramatic declines came on the back of ongoing uncertainty over whether the Federal Reserve will or will not take action.
“Some of the emerging market currencies are down by 20% since the beginning of the year. The sell off seen over the last few days has been driven by concerns over the future policy of the Federal Reserve, but also by a slowdown in Chinese economic growth which is taking its toll on commodity currencies such as the Australian Dollar” Said an economist at National Australia Bank.
A light data calendar added to the quiet tone to trading. Euro-zone industrial production rose 0.4% month-on-month in April against a no growth forecast, but was not enough to trigger a strong market reaction, while better-than-expected U.K. labour market data led to a slight bounce in the pound, which touched a high of $1.5681 against the Dollar.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6384
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7517
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0509
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 96.7560
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0178
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5663
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3303
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9515
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9825
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7945
(Correct as of 14:45 pm GMT)
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