Aussie and Euro Rise Against Safe-Haven Currencies

By: Barbara Zigah

High-risk currencies such as the common currency Euro and the Australian Dollar rose against the Japanese Yen and the U.S. Dollar in Asian trading today, rebounding from earlier losses following the issuance of a statement by officials from the Australian Reserve Bank. As reported at 3:30 p.m. (JST) in Tokyo, the Australian Dollar traded against the U.S. Dollar at $0.8437, up .4% from the $0.8317 low struck earlier in the trading day; against the Japanese Yen, the Aussie was trading at 74.08 Yen, an increase of .6% from an earlier low of 72.73 Yen. Ahead of the announcement some dealers were worried that the stance taken by the RBA would be too dovish in tone; the statement, however, dispelled investor concerns about the overall health of the Asian economies. While the RBA declined to raise the key cash rate, saying that the Asian economies were generally growing stronger, albeit somewhat unevenly, analysts are not ruling out the possibility of a rate hike next month.

The single currency Euro was trading against the U.S. Dollar at $1.2557, rebounding from an earlier trade of $1.2479. Meanwhile, against the Japanese Yen, the common currency was trading at 110.28 Yen, pulling away from the low of 109.14 Yen struck earlier in the session.