The US Dollar edges higher on the Yen

Foreign currency update at Send money home

US Dollar

The US Dollar is relatively unchanged against a number of peers but managed to edge higher against the Japanese Yen as inflation data out of the Asian nation came in lower-than-expected. Further gains were restrained as the Yen found support from growing concerns over the situation in Ukraine. The ‘Greenback’ is likely to see some movement later in the session when the latest Markit Services PMI and consumer confidence data is released.

Pound Sterling

The Pound is little moved against its peers as investors await the publication of March’s retail sales data. Month-on-month sales are forecast to soften whilst on a yearly basis sales are forecast to have edged higher. Also due for release is the latest BBA Mortgage Approvals data.

The Euro

The Euro firmed against the US Dollar and Pound as tensions between Russia and Ukraine increased. The rise in tensions caused investors to turn to the safe haven currencies such as the Swiss Franc and Japanese Yen. The Euro meanwhile benefitted from ECB President Mario Draghi’s dovish comments at yesterdays speech in Amsterdam.

Australian Dollar

The ‘Aussie’ softened yesterday after Wednesday’s disappointing inflation and Chinese manufacturing data continued to weigh. Today, movement of the currency is expected to be light due to the Australian and New Zealand markets being closed for the ANZAC national holidays.

 New Zealand Dollar

The New Zealand Dollar was little changed against the majority of its peers but continued to find support from the Reserve Bank of New Zealand’s decision to raise interest rates by 25 basis points to 3%. As with the ‘Aussie’ the ‘Kiwi’ is likely to see reduced movement due to the nation’s markets being closed for the ANZAC national holiday.

Canadian Dollar

The Canadian Dollar softened against the majority of its peers after Bank of Canada Governor Stephen Poloz told a conference that interest rates in the country will remain low for some time to come. The governor went on to say that the ‘Loonie’ is likely to fall over the next few months as the US economy improves.

 South African Rand

The Rand weakened against its peers as demand for riskier assets fell as tensions in Ukraine escalated. In response to an anti-separatist crackdown, Russian forces on the Ukrainian border embarked on military exercises heightening concerns that they could invade. A deal needed to resolve the three-month long strike by platinum miners remains elusive and added to pressure upon the Rand.