US Dollar Drops On Second Quarter’s First Day
The US dollar reduced on Wednesday following the reactions propelled by the good data of Japanese business which declined the Japanese shares but increased the Japanese yen. This had a negative impact on the US dollar but provided strength for its New Zealand and Australian counterparts.
A better conclusive data of the month of March’s purchasing manager index recorded in Germany and France affirmed to the fact that the economical condition is better now for the Eurozone, hence the Euro is strengthened.
A London based foreign exchange firm said: “There is a feeling that a lot of people made their money on the dollar move last month and will only come back properly in time for the climax of talks over Greece after Easter. Liquidity is thin and that has contributed to the volatility we have seen in the past week or so but for most people, the direction of the dollar still clearly seems to be down.”
The US dollar dropped 0.2 percent down to 119.83yen following the reduction of stocks in Japan due to the tankan released data.
Against the US dollar the Euro increased 0.2 percent up to $1.0789.
Chinese factory good data released raised the Australian dollar in the market but weaken the US dollar against the Yen. Singaporean based Oanda’s Senior Forex Trader, Stephen Inness stated that the “Dollar/yen has led this move today and I think it’s basically trading off the back end of the Nikkei.”
The Australian dollar increased 0.3 percent ahead to $0.7625, after reaching a height of $0.7664.