Dollar dives against pound, Aussie; rises versus yen
February 12, 2014 9:31 am
The dollar plunged against the British pound and the Australian dollar on Tuesday, following the data that amplified growth in the UK and Australia, while investors assessed the report from the US Federal Reserve Chairwoman Janet Yellen.
Her testimony also cited the Fed would trim its monthly bond buying if the economy would keep on improving in line with anticipations but the action was not on a preset course. The British pound accelerated to $1.6450 from $1.6408 on Monday. The UK retail sales in stores, which has been opened for more than 12 months, advanced 3.9% in January last year, while sales in all stores increased 5.4%.
The Australian dollar bounced to 90.38 U.S. cents from 89.46 U.S. Cents, following an upbeat reading about business confidence. Yellen said she was shocked upon seeing the last two jobs data, but said the Fed had to review the significance. The Fed cut down its monthly bond buying by $10 billion in its last two meetings, to end those purchases at the end of 2014. The Fed’s monetary stimulus has been interpreted to count on the dollar.
The dollar profited to ¥102.64 from ¥102.21 on Monday. Japanese markets were closed on Tuesday to observe National Foundation Day. The ICE dollar index, a benchmark of the greenback’s strength versus six other major currencies, slated at 80.634 against its 80.630 on Monday. The WSJ Dollar index, using a wider basket of comparison currencies, plummeted to 73.84 from 73.91 on Monday. The euro set at $1.3640 from $1.3645.
Yellen cited fluctuation in worldwide markets such as the rout in emerging market currencies and won’t prompt any modification in policy from the US central bank. “Our sense is that at this stage these developments do not pose a substantial risk to the US economic outlook,” Yellen added. The dollar also dived against the Indian rupee, the Turkish lira, and the South African rand on Tuesday.
The material has been provided by InstaForex Company – www.instaforex.com
The dollar plunged against the British pound and the Australian dollar on Tuesday, following the data that amplified growth in the UK and Australia, while investors assessed the report from the US Federal Reserve Chairwoman Janet Yellen.
Her testimony also cited the Fed would trim its monthly bond buying if the economy would keep on improving in line with anticipations but the action was not on a preset course. The British pound accelerated to $1.6450 from $1.6408 on Monday. The UK retail sales in stores, which has been opened for more than 12 months, advanced 3.9% in January last year, while sales in all stores increased 5.4%.
The Australian dollar bounced to 90.38 U.S. cents from 89.46 U.S. Cents, following an upbeat reading about business confidence. Yellen said she was shocked upon seeing the last two jobs data, but said the Fed had to review the significance. The Fed cut down its monthly bond buying by $10 billion in its last two meetings, to end those purchases at the end of 2014. The Fed’s monetary stimulus has been interpreted to count on the dollar.
The dollar profited to ¥102.64 from ¥102.21 on Monday. Japanese markets were closed on Tuesday to observe National Foundation Day. The ICE dollar index, a benchmark of the greenback’s strength versus six other major currencies, slated at 80.634 against its 80.630 on Monday. The WSJ Dollar index, using a wider basket of comparison currencies, plummeted to 73.84 from 73.91 on Monday. The euro set at $1.3640 from $1.3645.
Yellen cited fluctuation in worldwide markets such as the rout in emerging market currencies and won’t prompt any modification in policy from the US central bank. “Our sense is that at this stage these developments do not pose a substantial risk to the US economic outlook,” Yellen added. The dollar also dived against the Indian rupee, the Turkish lira, and the South African rand on Tuesday.
The material has been provided by InstaForex Company – www.instaforex.com
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