Forex: Tuesday’s review

The yen rose against the dollar, departing from its lowest level in nearly four years on speculation that the decline of 6.4 percent in the last three days was too fast. The Japanese currency rose against all but one of its 16 major counterparts after the earlier fell to 99.66 per dollar, its lowest level since May 2009. Recall that the leaders of the Bank of Japan, headed by Governor Haruhiko Kuroda said after a meeting last week announced that they will raise the monthly purchase of bonds by 7.5 trillion yen, as they have set a period of two years to achieve its goal of 2 % inflation.

The euro rose to a three-week high against the U.S. dollar as the fact that the European Financial Stability Fund said that the sale of bonds was recorded in high demand. As it became known, the fund sold five-year bonds in the amount of EUR 8 billion, while the volume of supply of 14 billion euros.

The British pound rose after data showed that UK industrial production rose in February more than expected, which means that the decreased risk of returning the economy back into recession in the 1st quarter of 2013. National Bureau of Statistics said Tuesday that the growth of industrial production in February by 1% compared to the previous month. Growth contributed to the restoration of oil and gas, the growth in the mining industry and the growth in the energy sector caused by the cold weather. Manufacturing production increased over the same period by 0.8%.

The Australian currency is growing a second day, as the monetary stimulus in the U.S. and Japan have increased the demand for higher-yielding assets. Also contributed to the increase in the inflation data in China that showed a slowdown in the growth of the consumer price index, which weakened the excitement about a possible tightening of monetary policy by the government. Thus, the index of consumer prices in March fell by 0.9% m / m while the forecast decrease by only 0.6% m / m and a rise of 1.1% m / m, while compared to the previous year index increased by 2 1%, while analysts expected a more significant increase of 2.4% y / y growth of 3.2% y / ya month earlier.