Daily Currency update
The Pound has fallen for a second-day against the US Dollar. Investors are taking a wait-and-see approach to today’s speech by Bank of England governor Mark Carney, who is expected to affirm his intention to maintain borrowing costs at all-time lows. Against the Euro, Sterling fell to its weakest level in three-weeks after positive data out of Germany boosted the single currency.
The ‘Greenback’ has strengthened against the majority of its most traded peers due to the escalating tensions over Syria accelerating declines in developing-nation currencies. Against the Indian Rupee and Turkish Lira the Dollar surged to new record highs. The currency has also received support from investors seeking safe havens as concerns over a war rattle the markets.
The Euro briefly traded higher against the US Dollar as the rising tensions between Syria and the US sent investors to seek safety in the Japanese Yen, which brought the Euro up with it. The positive confidence data out of Germany also boosted the single currency. Early on Wednesday however a weaker-than-expected consumer confidence report out of the region’s largest economy caused the Euro to retreat slightly.
The ‘Aussie’ fell to a three-week low against the US Dollar as demand for higher-yielding assets waned over concerns of the prospect of military action in Syria. Against the Euro the currency tumbled to a three-year low after the UK and France signalled that they may take action in response to the use of chemical weapon in the Middle Eastern country.
New Zealand Dollar
The ‘Kiwi’ touched a three-week low as volatility headed for the highest closing level in more than a month amid a selloff in emerging-market assets.
The ‘Loonie’ advanced against the US Dollar, climbing from a near seven-week low after the value of the nation’s biggest export of crude oil climbed to its highest level since July. The commodity’s value increased over fears that the situation in Syria could disrupt Middle Eastern oil supplies.
South African Rand
The Rand has tumbled to a four year low due to investors moving their funds out of the perceived riskier emerging markets. The currency was weighed down by the possible military intervention by the US and her allies in Syria. As a result of the concerns the Rand is the third weakest emerging market currency after the Turkish Lira and Indian Rupee.