Online Forex News: Dollar Trades at the Lowest Margins in One Week
Posted on April 1, 2010 by Shay Greenberg for Luckyroom.com
The Dollar traded near the lowest margins of the last week against the Euro as signs of recovery of Asian economies have cut demand for U.S. currency as a refuge. The yen [JPY = X] traded near the lowest margins of the last eight weeks against the euro as Asian equities rose and current reports showed an increase in industrial production in China which have improved the confidence of Japanese companies.
The dollar fell in New Zealand against all major currencies after the announcement of the International Monetary Fund IMF that the currencies were overvalued and could fall as the interest rate advantage of the country against U.S. decline. The U.S. currency traded at 1.3507 per euro at 11:11 a.m. in Tokyo from 1.3510. Earlier it touched 1.3561, its lowest since March 23. The yen traded at 126.09 per euro from 126.27. Earlier it was traded at 126.63, its lowest since February 3.
The U.S. currency touched 93.36 yen from 93.47 yen after the ascent to 93.64, the highest since Jan. 8. Japan’s Nikkei index [. N225] 225 noted increased 0.7% and the MSCI Asia Pacific Index of regional shares gain 0.5%. In China, the PMI rose to 55.1 in March from 52 in February according to Li & Fung Group, a company based in Hong Kong to communicate the data. In Japan, the report of the Bank of Japan showed that confidence among major industries of the country stood at minus 14 in the quarter ending in March, the highest level since September 2008. The New Zealand dollar fell after the announcement of IMF that the deficit of the current account of the country will increase if the currency remained at its current levels. The currency fell 0.4% to 70.77 cents against the U.S. dollar. Lending rates in Australia are at 4% and New Zealand at 2.5%, compared to 0.1% to Japan and to zero in the U.S.
The South Korean currency climbed after reports showed that sales abroad rose more than expected. The country’s exports rose 35.1% in March compared with the previous year, according to today’s announcement of the government. The currency strengthened 0.1% to 1129.25 on the dollar. It Touched 1127.68, its highest since March 15.
