By: Barbara Zigah
A draft communiqué to be issued by the G20 leaders is promising that they will keep current emergency measures in place in an effort to shore up the global economies until such time as the recovery is solid. Immediately following the release of the draft, the U.S. Dollar slipped with speculators selling off the low-yielding currency in favor of higher yielding currencies. The greenback had rallied in Thursday trading when the Federal Reserve Bank, in conjunction with other key central banks, announced the process by which the huge U.S. dollar injections would be scaled back.
Yesterday, the U.S. Dollar Index rose more than 1%, but that rally was to be short-lived. As reported at 3:51 p.m. (JST) in Japan, the U.S. Dollar Index, which is a gauge of the greenback’s value versus other major currencies, slipped to 76.719 .DXY, a decrease of .2%. Versus the Japanese Yen, the U.S. Dollar lost .8%, to trade at 90.57 Yen.
The U.S. Dollar’s rally yesterday meant that higher-yielding currencies, including the New Zealand Dollar and the Euro, would take a hit. Following the communiqué draft, however, they were able to recover some of those losses. The Australian Dollar traded at $0.8691, a gain of .4% and nearing a 13-month high that was touched on earlier in the week. The Euro traded at $1.4690, an increase of .2%.
With Promise by G20 leaders, U.S. Dollar Slips
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.