The New Zealand dollar continued to lose against other currencies today (except the U.S. dollar) as the economy contracted in the first quarter and the expectations that the central bank will cut the interest rate rose.
The U.S. dollar dropped against the euro, pound and yen today after the Federal Reserve left the interest rate unchanged and released a statement showing no substantial signs that the rate can be raised by the end of the year.
The U.S. dollar declined today against the euro, extending its weekly drop, as the chances for the Federal Reserve to increase the interest rates next week became more slim.
The finance ministers from the Group of Eight nations confirmed their position in the favor of a stronger U.S. dollar at the meeting in Osaka, Japan today.
The Australian dollar fell to its one month low against the U.S. currency as the jobs dropped in May for the first time since October 2006 and the traders became more confident that the central bank won’t be raising interest rate more.
The U.S. dollar rose against euro, pound and yen today, rebounding from the yesterday drop, as the market strategists expect a good report on the U.S. retail sales to support Fed’s hawkish interest rate outlook.
The U.S. dollar recovered against the Japanese yen today after the dollar lost significantly against yen on Friday and this week trading opened with a wide gap against the greenback on Forex.
The New Zealand dollar went for a third day of losses today on the Forex market, making this week a biggest drop since mid May, as the Reserve Bank of New Zealand Governor Alan Bollard said that he may cut interest rates this year.
The Australian dollar benefited today from the better than expected first quarter GDP growth as the Reserve Bank of Australia may start considering interest rate hikes again.