Higher yielding currencies declined in Asian trading today as investor concern over the pace of economic recovery in Euro-zone nations reduced demand. Versus the U.S. Dollar, the Australian Dollar traded at $0.9017, a decline of .5% and the first drop in four days; yesterday, it traded at $0.9086, the highest price in nearly 6 weeks. The New Zealand Dollar traded in a similar fashion versus the U.S. Dollar, falling .7% to trade at $0.6897.
The single currency Euro also fell from a 2-week high versus the U.S. Dollar on the expectation that ECB officials will have to continue the current stimulus measures, given Greece’s struggle to reduce its fiscal deficit. The European Central Bank is expected to announce an interest rate decision today, but analysts predict it will hold rates steady. As reported, the Euro traded at $1.3666, a decline of .23%, and well off the $1.3736 trade, the highest trade in nearly 2 weeks. Some market players believe, however, that the ECB will scale back the special lending program which had been introduced during the height of the fiscal crisis.