By: Barbara Zigah
Investor worries about Eurozone debt problems continues to wreak havoc on the common currency Euro, which remains hovering close to a 2-month trough versus the U.S. Dollar. As reported at 12:01 p.m. (JST) in Tokyo, the Euro traded at $1.3328, a fall of .3% and close to Wednesday’s trade of $1.3284, when it struck the 2-month. According to one forex manager in Tokyo, Portugal’s steadfast refusal to accept bailout help is weighing heavily on the Euro, as is even the rumor that the Eurozone is in danger of a breakup.
Earlier this year, Jean-Claude Trichet was reinforcing the ECB’s position that they were working on exit strategies away from the current loose monetary policy, but many analysts see the worsening crisis in Eurozone changing the ECB position. One economist believes that the ECB may make an announcement of the policy change at their next meeting.
The Australian Dollar took a fall against the U.S. Dollar, when the Reserve Bank of Australia dampened investor rate hike expectations. The Australian Dollar traded at $0.9750, a slide of .6%. According to the bank governor, current interest rates were appropriate given the state of the economy, and no changes would be forthcoming.