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on Greece aid deadlock.
The currency slid 1,2 percent to 114,76 yen from 116,23.The dollar gained 0,3 percent to 80,9950 yen from 80,70 as it faced resistance at 80,9950. Europe’s common currency has depreciated 1,2 percent in the past week against its six major developed currencies.
This has left the dollar index, which measures the greenback against the currencies of its six trading partners on an upward trend up 1,6 percent at 75,41.
Economic fundamentals have given investors no reason to belong to the eurozone as the European officials failed to agree on a rescue plan for Greece.
There is bound to be a downside risk for the eurozone area on the macro front and for the euro as well.
In London the euro was trading at 0,8757 against the sterling pound, with the dollar rebounding against the pound to trade at 1,6185 from 1,6350.
In Switzerland the Swiss National Bank had investors waiting upon a rate decision and was set to keep rates unchanged to favour exporters like the luxury watchmakers.
The Swiss franc is up 0,2 percent as it was trading at 1,200 against the euro. Investors regard the Swiss franc as the classical currency and as a safe haven in terms of currencies based on events happening in Europe and the US.
In Asia we saw the Aussie dollar fluctuate fell 0,1 percent to 1,0563 after having appreciated 0,3 percent against the US dollar.
The Aussie dollar had rallied before on concern that the Reserve Bank of Australia will likely raise rates in September.
The NZ dollar fell to a three-week low on threat of a Greek contagion that has also affected global stocks as they are on a fall and was trading at 80,53 from 81,26.
On the African Safari, Africa’s biggest economy’s currency the rand saw it depreciate by 0,7 percent at 6,8453.
This has been driven by events taking place in Europe on Greek concerns as rating agencies have raised the default rate risk to 75 percent.
The so-called carry trades in which investors borrow dollars
at near zero interest and invest in high-yielding assets like the rand have contributed less to boost the Rand.
Another factor that has weighed down on the emerging market currencies is the MSCI gauge fell to its intra day low on renewed concern that the US retail sales figures fell 0,5 percent.
Crude oil fell on Greece concern and the US economic woes trading at US$95,20 a barrel.
Gold was up 0,4 percent as it looked to reverse earlier losses of the previous day from US$1 518 an ounce to US$1 526,80. Silver was trading at US$35,74 an ounce.
l Prodigy Chinanga is a Forex Strategist and you can contact him on 0772753594 or on [email protected]