Daily currency report
Sterling
The UK financial markets where closed yesterday in observance of the summer bank holiday. Hence trading in the British pound was somewhat restricted.
US dollar
The dollar index which tracks the greenback against the euro, yen, pound, Canadian dollar, krona and Swiss franc, surged 16 per cent from last year’s May low to this year’s peak in July. The US currency fell 1.4 per cent last week against the euro and depreciated 1.1 per cent against the yen. Net bets that the world’s reserve currency will weaken against eight major peers increased, data from the Commodity Futures Trading Commission show.
Euro
The euro approached a seven-week high against the dollar after German business confidence fell less than some economists forecast, suggesting the region’s largest economy can withstand the sovereign-debt crisis. The 17-nation currency climbed towards the strongest since July versus the yen after German Finance Minister Wolfgang Schaeuble said and will create a working group to enhance the region’s fiscal and monetary union.
Australian dollar
The Australian dollar touched its lowest level in a month, extending a two-week decline, as concern global growth is waning curbed demand for higher-yielding assets. The so-called Aussie slid versus most of its 16 major counterparts after a report showed profits for industrial companies in China, Australia’s biggest trading partner, fell 5.4 per cent in July from a year earlier.