New York, NY (BBN)- The European currency (EUR) hit a five month high against the U.S Dollar (USD) on Thursday, reversing earlier looses on concerns about Irish fiscal and banking problems, after banks borrowed less than expected at a European Central Bank tender.
The EUR was trading around 1.3676 against USD on Thursday, gaining nearly 12 percent against the Greenback over the course of this quarter.
The British Pound (GBP) hit an eight week high against the USD as expectations of further monetary easing waned after bank of England policy maker Adam Posen said that he had not decided his vote at the next policy meet.
The GBP rose to 1.5915 against USD. The GBP also rose against the EUR as Ireland’s Central Bank put a 30 billion EUR price on bailing out Anglo Irish bank under worst case scenario, according to reports.
The USD weakened against the Japanese Yen (JPY) over the week, to trade around 83.43 Yen on Thursday, edging closer to a 15-year low of 82.87 JPY hit on earlier this month. With USD/JPY trading near the 15-year low levels, investors became cautious of possible fresh intervention by Japan to stem the Yen’s strength.
BBN/SSR/AD-03Oct10-10:28 am (BST)