Friday, February 22, 2013

Market Close….


The euro hit a six-week low against the dollar on Friday, heading for a third straight week of losses, after the European Central Bank said banks will repay less than half the expected amount of loans and on uncertainty about Italy's election. On the week, the Common Currency fell 1.3% versus the US dollar.

Meanwhile, some strategists said they expect the euro to grind lower ahead of the outcome of Italian elections, which is not expected until next week. But they added the currency should find support around $1.3040, near the Jan. 10 low of $1.3037.

The yen dropped against the dollar and euro, with many investors forecasting further weakness as the Bank of Japan looked set to ease monetary policy further to fight deflation.

The dollar gained momentum after minutes of the U.S. Federal Reserve's latest meeting, released on Wednesday, fueled speculation the Fed may start to tighten monetary policy earlier than expected.

On the other hand, the Australian dollar regained ground after hitting a four-month low of $1.0221 against a broadly stronger U.S. currency on Thursday. It was last up 0.7 percent at $1.0318

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