Forex Marketz Daily Forex News – Fully Markets Update
The Japanese yen outperformed other currencies during the Asian trade session on Thursday. Traders are worried about global economic growth, thanks to ongoing trade tensions, as well as central banks looking to cut rates and adopt an easy monetary policy approach. This has boosted the safe haven Japanese currency.
Both the New Zealand and the Australian dollars gained ground recovering from steep losses, seen yesterday, after the Reserve Bank of New Zealand stunned financial markets with a 50 basis point rate cut.
The benchmark USD/JPY exchange rate saw the yen gaining 0.15 percent against the dollar to trade at 106.105 yen. This market, overnight, was at 105.50. This was its strongest price level since January 3.
The NZD/USD exchange rate hit a seven year low at 67.58 yesterday and was last trading at 68.44. After the RBNZ rate cut, other regional central banks including Thailand and India also signaled concerns with global economic growth.
The NZD/USD was last trading at $0.6456 after hitting better than a three and a half year low at $0.6378 yesterday.
The AUD/USD exchange rate was trading flat at $0.6761 after hitting its lowest price point since March 2009 at $0.6677 on Wednesday.
The dollar index, which measures the strength of the greenback against six other currencies, was flat at 97.587. Yesterday, on Wednesday, the dollar index fell 0.1 percent.
Traders Worry about Economic Growth and Easy Monetary Policy and Support the Yen
Traders are growing more and more worried over slowing global economic growth. This is dragging down currencies like the dollar and euro and supporting safe haven currencies.
More and more central banks are hinting at cutting rates and other accommodative measures to boost economic growth and low inflation. This has dragged yields down and hurt the Forex markets.
Fed funds futures are now pointing to increasing odds that the Federal Reserve will cut rates three more times this year to avoid a recession.
