Daily currency report
The dollar and yen rallied across the board as concern mounted that a swine flu outbreak in Mexico could become a global pandemic, prompting a fresh bout of risk aversion. Stocks slid worldwide as investors feared that a flu pandemic could delay any...
The dollar and yen rallied across the board as concern mounted that a swine flu outbreak in Mexico could become a global pandemic, prompting a fresh bout of risk aversion. Stocks slid worldwide as investors feared that a flu pandemic could delay any global economic recovery.
Sterling
The pound continued to fall pressurised by concerns that an outbreak of swine flu could dampen a global economic recovery, raising risk aversion and prompting investors to seek the perceived safety of the dollar and yen. Mortgage lending by the UK's major banks fell for the first time in four months in March. This dealt a blow to talk of a housing market recovery which had been fuelled by signs of stabilising house prices.
US Dollar
The dollar pushed to its higher levels against most major currencies on the back of safe haven buying. General Motors announced it would slash 21,000 jobs, close plants and would be at least half owned by the US government under a plan the automaker outlined to slash its debt and cut dealer ranks nearly in half.
Euro
The single currency retreated from a one-and-a-half-week high against the US dollar as a result of the broad pullback in risk appetite. The euro also suffered from profit taking on its impressive run against the greenback, based mostly on some upside surprises to data out from the 16-member bloc.
Japanese Yen
The yen strengthened against the euro after the World Health Organisation said the swine flu outbreak is no longer containable. The yen also received a boost versus the dollar after the Wall Street Journal reported that Bank of America and Citigroup are being told by regulators that they need more capital after stress tests on the US banks come to an end this week.