Monday, June 29, 2009

Kiwi and Aussie Dollars on the rise while the US dollar drops

While China's central bank today backing off statements made on Friday in which it reiterated the need for a new global reserve currency away from the dollar , The US dollar and yen dropped versus most of their major counterparts as a report showed confidence in the European economy increased and U.S. stocks rose, encouraging investors to buy higher-yielding assets. The Swedish krona was the biggest winner against the dollar among the 16 most-traded currencies as investors bought Scandinavian debt. The Euro gained the most versus the yen in four weeks as improvement in European executive and consumer sentiment added to signs record low rates are helping pull the euro area out of a recession
The Australian and New Zealand dollars rose, heading for their best quarter against the greenback since at least 1985, as optimism the global slump is easing buoyed demand for higher-yielding assets.

The two currencies gained for a sixth day versus the U.S. dollar after regional stocks advanced.