By: Barbara Zigah
In mid-afternoon trading in Asia, the common currency Euro rose against the U.S. Dollar as two ECB officials confirmed that the central bank stands at the ready to increase interest rates if inflationary pressures warrant. As reported at 2:20 p.m. (SGT) in Singapore, the Euro was trading higher against the greenback, up .3% to $1.3692, rebounding from yesterday’s intra-day low of $1.3525. According to another trader in Tokyo, Euro short covering by hedge fund operators and central banks in Asia could mean a rise today, though traders expect to meet resistance at $1.3750.
Other commodity-linked currencies also gained in Asian trading. The New Zealand Dollar, off a 2-month trough struck earlier in the session, has rebounded against the U.S. Dollar to $0.7472, a .1% rise; yesterday, the Kiwi slid more than 2% on news of a major earthquake in Christchurch, the country’s second largest city. Any possibility that the New Zealand central bank might have considered a rate hike has essentially been dismissed in the wake of this natural disaster, which is the worst in nearly 8 decades
The Australian Dollar has also moved higher against the U.S. Dollar, trading above parity to $1.0019, a .3% gain. Yesterday the Aussie lost ground as investors sought safe haven currencies in the face of escalating violence in Northern Africa sparked investor concerns that the rising price of oil might slow global growth.