The yen and dollar gained against most emerging-market currencies as the Federal Reserve continued to trim monthly bond buying that has propped up global asset prices.
New Zealand’s dollar extended a decline versus the greenback as the central bank held interest rates steady after Governor Graeme Wheeler said in December he expected borrowing costs to rise in the first half of 2014. Developing-economy currencies fell earlier as South Africa’s central bank joined Turkey in raising its benchmark interest-rate in moves that failed to reassure investors. Russia’s ruble extended its slump to 13 days and Hungary’s forint weakened.
“From the point of view of emerging markets, the Fed has just said ‘hasta la vista, baby,’” Steven Englander, global head of Group of 10 foreign-exchange strategy at Citigroup Inc., wrote in an e-mail. “There is modest disappointment in” riskier currencies.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015