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Foreign exchange market: general fall in currencies, the yen falters

25/10/2024
Source : ORISHAS-FINANCE
Categories: Economy/Forex

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Currencies ended the week down. While the US, Australian and New Zealand dollars are falling, the Indian rupee is ending a quiet week by staying at an all-time low. The Chinese yuan is falling and the yen is wobbling, vulnerable to political repercussions

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The dollar was on the defensive Friday after registering its biggest drop in a month against its main counterparts, as it followed the decline in US yields from their highest level in nearly three months, after Worse; s that depressed Treasury bill prices attracted buyers. The dollar index, which measures currency against six other currencies, was little changed at 104.06 after falling from a three-month high of 104.57 on Wednesday. Over the week, it grew by 0.56%. The dollar was stable at 151.835 yen, and the euro fell by 0.04% to

1.082325 dollars.

The Australian and New Zealand dollars wavered on Friday and were on the brink of a fourth week of losses as rising US yields boosted the US currency, with the bearish technical setup suggesting that both could fall again. The New Zealand dollar lost 0.2% to $0.6003 after rising 0.2% overnight. It is also down 1.1% for the week, with support at around $0.5975 and $0.5850. Australian and New Zealand dollars find support after a massive selloff, bonds rebound

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The Indian rupee will be caught between a weaker dollar on one side and capital outflows on the other, on the last day of a week in which the local currency maintained a 3 paisa its narrowest range this year - and fell to an all-time low. The 1-month undeliverable futures contract indicated that the rupee would open almost unchanged at 84.0775 in the previous session. The rupee moved in the 84.0550-84.0825 range this week, largely thanks to a central bank helping the currency amid persistent stock outflows and higher US

Treasury returns.

The Chinese yuan remained stable against the dollar on Friday, but is heading for its fourth weekly decline amid a resurgent US currency and growing concerns about an escalation of the trade war if Donald Trump wins next month's election. The yuan was trading around 7.1250 per dollar at the end of the morning, down 0.1% from the previous close. For the week, it is expected to fall by 0.3%

.

The yen stayed close to a three-month low on Friday and headed for a fourth consecutive weekly loss, ahead of an election in Japan this weekend that is expected to complicate the Bank of Japan's (BOJ) policy normalization plans. The yen was down 0.1% to 152 per dollar and expected a 1.5% loss for the week. The yen's fall, especially since it weakened again beyond the key level of 150 yen to the dollar, has left traders on the alert about any intervention by Japanese authorities to support the currency

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