Dhaka, Bangladesh (BBN) – US Dollar (USD) slid to near three-week low of 1.4201 against the Euro (EUR) on Wednesday as traders booked profits on short positions in the US currency.
The decline was propelled by news that China was seeking debate about proposals for a new global reserve currency at next week’s Group of Eight meeting.
Gains in global stocks as well as improved manufacturing activity data in Europe and China have also hurt demand for the Greenback as a safe haven.
However, USD and the Japanese Yen (JPY) strengthened towards the end of the week before a report likely to show the US unemployment rate rose to a 26-year high, spurring demand for the currencies as a refuge, according to reports.
The Swiss Franc (CHF) declined against the EUR and the USD after Central Bank governing board member Thomas Jordan said officials stand ready to intervene to prevent an appreciation of the currency. CHF weakened to 1.5232 against the EUR and 1.0835 against the USD
BBN/SS/SSR/AD-03July09-4:11 pm (BST)