Forex: Thursday’s review
11.01.2013, 08:58

Forex: Thursday’s review

The euro rose the most in five months versus the dollar as European Central Bank President Mario Draghi said the economy should gradually recover and the decision to refrain from cutting interest rates was unanimous.


The 17-nation currency climbed to the strongest since July 2011 against the yen after Spain sold more than the maximum target at its first debt auction of the year, adding to signs the region’s financial crisis is easing. The Spanish Treasury in Madrid raised 5.82 billion euros ($7.69 billion) from the sale of three bonds, exceeding its upper target of 5 billion euros. The auctions included a new two-year note with so-called collective-action clauses limiting investors’ rights to oppose writedowns.

The yen fell for a second day versus the dollar on bets Japanese policy makers will boost stimulus that tends to weaken the currency. The yen declined against all of its 16 most-traded counterparts except South Africa’s rand after a draft document obtained by Bloomberg News showed the government expects the central bank to conduct “bold” monetary easing. Bank of Japan Governor Masaaki Shirakawa said the BOJ was in close cooperation with the government. The central bank next meets on Jan. 21-22.

Australia’s currency gained for a fifth day as Chinese imports increased. Australia’s dollar strengthened to the highest level in almost four months versus its U.S. counterpart after data showed imports increased in China, the South Pacific nation’s biggest overseas market. Shipments to China rose 6 percent last month, the customs administration said in Beijing.

The British pound rose after it during the first meeting of the new year, the Bank of England MPC members decided to keep the current course of monetary policy unchanged.


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