Daily Currency Report

Market review

The week kicked off to a slow start for the foreign exchange market with the US and UK markets away for holiday. The dollar drifted lower overnight versus the euro and the sterling. The dollar declined on speculation US industry reports this week will signal the pace of expansion in the world's largest economy is slowing.

GBP
Yesterday's bank holiday kept the sterling relatively unmoved at approximately 1.59 against the Maltese lira.

USD
Losses in the dollar may be limited after Federal Reserve Bank of San Francisco President Janet Yellen said exchange-rate movements were more important than globalisation in keeping US prices low over the past decade.

EUR
The euro managed to climb higher versus the dollar to 1.2765 amid holiday-thinned trading. Data released overnight saw the ECB's investment flows for the eurozone, with combined net direct/portfolio investment inflow at €56.7 billion, improving from an outflow of €4.9 billion.

JPY
The Bank of Japan revealed that it was injecting funds into the financial system earlier in the session, with a repo agreement to purchase one trillion yen in bills expiring on June 1.

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