Daily Currency Report
Market overview
In news that caught the markets by surprise, American existing homes sales data was unexpectedly robust in February. The markets responded by aggressively buying the greenback as further rate rises now appear to be inevitable.
GBP
With investors still focusing on high yields and interest rate prospects, the pound shrugged off strong manufacturing data, and ended significantly lower against the US dollar.
USD
Ben Bernanke's optimism earlier in the week coupled with strong housing figures have convinced markets that rates will reach five per cent before too long, pushing the dollar higher across the board.
EUR
The European single currency has been the principal loser on the exchanges this week, as traders continued to back the resurgent US dollar. Even though interest rates look set to rise within the eurozone, the higher yield available in the US has proved to be a more attractive proposition for investors.
JPY
The Japanese yen fell by almost one per cent against the US dollar despite the news that assets of Japanese households had hit a record in the last three months.
Compiled by Commercial Foreign Exchange Travelex Malta. (Free phone: 800 77 33 22) www.travelex.com.mt