The dollar continued its downward spiral on Monday mostly due to strengthening of currencies in Asia and the Eurozone. The euro was buoyed by hopes the European Central Bank would continue to curb its monetary stimulus policy, sending the common currency higher against most of its primary trading partners. On Friday, the euro hit a three-year high of $1.2218, a price not seen since December 2014 before retreating slightly. The euro was trading at $1.2204, up 0.16 percent as of 3:46 p.m. HK/SIN.
The dollar also slumped against the yen after Bank of Japan Governor Haruhiko Kuroda announced on Monday that the BOJ was committed to maintaining its stimulus program. “The economy is expected to continue expanding moderately,” he added, reiterating his optimism on prospects for a sustained recovery. Kuroda’s statement sent the yen to a four-month high, and the dollar was down 0.17 percent in the late afternoon on Monday, to trade at 110.84, up slightly from lows of 110.63 hit earlier in the session.
Stock Market Gains Continue
After another record-breaking close on Wall Street on Friday prompted by solid earnings reports, Asian stock markets headed higher on Monday, even with thinner-than-usual trade due to the Martin Luther King Jr. holiday in the United States. Though the Shanghai Composite bucked the trend to slip 0.55 percent, most indexes were standing firm by Monday afternoon. Australia’s ASX 200 was up 0.12 percent, South Korea’s Kospi was up 0.29 percent and Japan’s Nikkei 225 gained 0.26 percent.
Trading in Indonesia was temporarily halted on Monday after a mezzanine floor collapsed at the Indonesia Stock Exchange building. Police officials have concluded that the incident was not caused by a bomb.