Falling oil price stabs commodity currencies

Discussion in 'CFDs' started by Profiforex_Victory, Apr 18, 2016.

  1. Profiforex_Victory

    Profiforex_Victory Новичок

    The euro went up to $1.1300 but then the euro was still down against the yen as sliding oil prices had made investors turn their attention to safe-haven assets like the yen. The decline of the euro against the yen to 121.71 yen would mark the lowest the euro had fallen against the Japanese yen since the Bank of Japan launched its massive asset buying programme on April 4, 2013.

    Jack Lew, the US Treasury Secretary had said on Friday at the G20 meeting that he doesn't really anticipate an unstable currency market. This was really a pacifying response to the concerns raised when Japan said they may soon resort to an intervention in face of quick gains recorded by the Japanese yen.

    A lot of investors had fallen back seeking safety in the Japanese yen as a fall in oil prices had really cut down on their appetite for riskier assets. This had caused more gains in the yen as it posted a 3-year high against the euro. Such that it had touched 109.16 yen for $1.

    There was also a fall in the Canadian dollar as it dropped to C$1.2948 for a dollar; while the Australian dollar also dropped to $0.7673; this was a decline of about 0.7%.

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