The U.S. Dollar continued its rally against the Yen after reports suggested the Federal Reserve may refrain from implementing more quantitative easing at this time. The greenback was also buoyed by the release of data showing an increase in industrial production and a substantial hike in homebuilder confidence.
Other live Forex news indicated that the Euro weakened on speculation the Swiss National Bank sold off Euros as it augmented its foreign currency reserves in July. The Swiss National Bank’s reserves have recently reached record highs. The Euro rate remained under pressure after Greece requested a two-year extension for implementing its austerity plan. The 17-nation currency slumped against the British Pound subsequent to the release of the Bank of England’s monetary policy meeting minutes which revealed that all members voted unanimously to leave the interest rate and the asset purchasing program unchanged.
The Canadian Dollar benefitted from positive data out of the U.S. and rose to the highest level versus the greenback since May 4th. The Loonie was supported by the possibility that economic growth in the U.S. will help its exports. The Canadian Dollar continued to advance as crude oil went up to $94.90 per barrel while the Federal Reserve announced that Industrial Production rose 0.6% in July.
The South Pacific currencies remained low as current exchange investors believe that strong data out of the U.S. will prompt the Federal Reserve to hold off from implementing additional monetary easing measures. The Aussie gained due to the release of positive domestic economic data.