• Euro Banks To Re-Pay Larger Amounts On Loans
  • Euro Banks To Re-Pay Larger Amounts On Loans

    David Sumner | 09:30 | 27/01/13
    The Euro rate climbed to the highest level in 11 months against the U.S. Dollar as the European Central Bank announced that regional banks would repay their ...

The Euro rate climbed to the highest level in 11 months against the U.S. Dollar as the European Central Bank announced that regional banks would repay their three-year loans by making bigger installments than analysts had predicted, which in turn bolstered short-term borrowing costs. The 17-nation currency extended its gains versus the Yen after the ECB reported that 278 banks would pay back 137.2 billion Euros within the coming week. Meanwhile, the Yen declined after the Japanese government released a statement indicating that consumer prices dipped 0.2% in December. The Yen pared earlier losses subsequent to news out of the U.S. which showed that home sales went down last month –a factor that reduced demand for high-risk assets.

In other money market reports, the Canadian Dollar traded at the lowest price in close to six months against its American counterpart after data confirmed that consumer prices dropped more than expected last month while growth slowed for the world’s 11th biggest economy. The Loonie slipped against the majority of its Forex peers on official figures revealing that Canada’s rate of inflation fell 0.6% last month. Just days ago, the Bank of Canada lowered its growth forecast for 2013 and suggested that rate hikes were not urgently needed. The currency remained under pressure as crude oil, the country’s largest export, traded at $95.84 per barrel on the New York Mercantile Exchange.

Lastly, the Australian Dollar advanced versus the Yen on speculation the Bank of Japan will be pressured into expanding monetary easing as consumer prices have gone down.

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