By: Barbara Zigah
In Asian trading today, the common currency Euro gained versus the U.S. Dollar and Japanese Yen following China’s announcement this past weekend that they intend to soften their stance on their exchange rate policy. Officials from the Chinese central bank left the Chinese Yuan parity as it stood on Friday, but later on in the session it rose on investor sentiment that the government would allow it to further appreciate; analysts commented that they believe appreciation will be gradual, however. One economist noted that the move by the Chinese central bankers was deliberate given the upcoming G-20 meeting to be held in Toronto next weekend.
As reported at 1:50 p.m. (JST) in Tokyo, the Euro was trading versus the U.S. Dollar at $1.2458, while against the Japanese Yen the Euro traded at 113.04 Yen, up from 112.26 yen during late Friday’s trading in New York.
The Australian Dollar is also benefiting from the strong Chinese Yuan, which gives Chinese importers more purchasing power when buying Australian goods. Against the Japanese Yen, the Aussie rose to a new 1-month peak of 80.30 Yen. It also fared well against the U.S. Dollar, striking a new 1-month peak, trading at $0.8844 up from Friday’s trade of $0.8728.
High Risk Currencies Gain on Newly Appreciating Yuan
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.