Forex News

The Reserve Bank of New Zealand cut its benchmark interest rate from 3.0 percent to 2.5 percent to a record low level for the country’s economy.

The dollar dropped against the euro for the second day in a row as stock market conditions improve, bringing risk appetite back among investors.

The euro rose against the dollar and the pound as concerns involving the swine flu have eased and the reported economic confidence in the region hit the highest level in a one-year period.

The U.S. dollar and the yen fell as signs that the recession could be ending attracted investors back to riskier assets, making the demand for refuge currencies, such as the greenback, to diminish.

The New Zealand dollar, followed by its Australian counterpart, fell for the second day on fears that the swine flu may deepen the global slump, affecting tourism and high-yielding assets.

The yen, regarded as a refuge currency, hit a six-week high against the euro after the World Health Organization affirmed that the swine flu is spread and cannot be contained.

The pound had a bad start this week after former U.K. Treasury adviser Roger Bootle said that a depression might be coming for the national economy as house prices decline.

The yen hit a four-week high against the dollar as speculations suggest that the swine flu will deepen the global slump.

The South African currency climbed this week against the dollar, after the African National Congress, the winning party, is expected to maintain the current economic policies in the country.

The Malaysian ringgit is topping the gains’ list among Asian currencies, followed by the Singaporean dollar, thanks to the government stimulus and interest rate cuts.