Compare Money Transfer daily currency report
The Euro is holding steady and is close to a six-month high against the US Dollar as uncertainty over the timing of a possible tapering by the Federal Reserve continues to dominate market sentiment. The Dollar came under pressure against the single currency as expectations mount that the Fed will begin to loosen its monetary easing programme in September. Demand for the single currency continued to be underpinned after data last week showed that the Euro zone economy returned to growth in the second quarter.
The Pound is little changed against the US Dollar and Euro as economists await the release of a report which is expected to show that the UK’s public finances improved in July. The data is expected to show the UK governments budget surplus £2.9 billion in July, more than the £1.6 billion recorded in June. If the data comes in as forecast it will lend further support to the strengthening UK economy.
The ‘Greenback’ soared against its Asian rivals as investors await the release of the minutes for the Federal Reserve’s July policy meeting. Against the Indian Rupee the Dollar surged to yet another record high and hit a four-year high against the Indonesian Rupiah. It is also expected to make a third day of gains against the Australian and New Zealand Dollars.
The ‘Aussie’ has fallen for a third-day against the US Dollar as the world awaits the release of the Federal Reserve minutes for its July policy meeting. The currency fell to a two-week low against the ‘Greenback’ as traders viewed the latest radioactive leak from Japans Fukuishima nuclear power station as another reason to sell off the embattled currency.
New Zealand Dollar
The ‘Kiwi’ has fallen for a third-day against its most traded peers before the Federal Reserve releases minutes to its latest policy meeting, Also weighing upon the currency are the steps being taken by the New Zealand Reserve Bank to curb home lending.
The ‘Loonie’ is hovering close to a two-week low against its US relation after oil, Canada’s biggest export, slid amid bets that the Federal Reserve will slow the monetary stimulus that has fuelled demand for riskier assets.
Also weighing upon the currency was the news from the Australian and New Zealand Central banks, both banks signalled that they will be taking steps to weaken their currencies further. Tomorrow’s retail sales data is also expected to weigh on the currency as the report is expected to show a fall in June.
South African Rand
The Rand has steadied, recovering from six-week lows earlier in the week as the US Dollar lost some of its strength and as investors await the release of domestic inflation data and the minutes from the latest US Federal Reserve meeting.