Dhaka, Bangladesh (BBN) – Foreign exchange markets saw large swings as positive economic news and political risk fears saw investors alternatively seeking safety and return.
Swings were further fuelled by gains in commodity markets, with gains in both copper and crude oil.
The British Pound (GBP) breached the 1.60 level against the US Dollar (USD) for the first time since November 2008. GBP touched USD 1.6039 as positive economic indicators out of the US and Japan markets saw investors looking to buy cheap showing interest into the British currency.
The Euro (EUR) slumped on expectations of weak spending by French consumers in April. EUR fell to 1.3967 against the USD, raising expectations that the European Central Bank will reduce key rates further.
The Japanese Yen (JPY) fell the most in eight weeks against the USD and declined against the EUR after a report showed that demand for overseas assets among Japanese investors is growing, adding to evidence the recession is moderating. The JPY weakened to 96.98 against the USD.
The Canadian Dollar (CAD) gained on the back of rising oil prices, touching an eight-month high of 1.1108 against the USD, according to reports.
BBN/SS/ANS/AD-29May09-8:41 pm (BST)