The Euro advanced the most in one week against the U.S. Dollar following an Italian auction during which the maximum number of bonds offered were sold off. The outcome helped ease concerns that Euro region’s member nations wouldn’t be able to access to the debt markets. The shared currency declined earlier in the day subsequent to comments by an ECB Governing Council member, Luc Coene, suggesting that the purchase of bonds won’t completely fix Italy or Spain’s ongoing debt problems.
The New Zealand Dollar declined versus the greenback as the Finance Minister, Bill English, stated that a weaker currency a weak currency is preferable, especially since the Kiwi is considered a safe haven for investors from countries like China.
Other Forex money reports showed that the Canadian Dollar slipped for the first time in over a week against the greenback as crude oil prices dipped after reaching above $93.00 a barrel last week.
The British Pound dropped against the Euro when the Bank of England’s Governor, Mervyn King, issued a statement suggesting that the U.K.’s recession was a result of the Euro region’s debt crisis. The Sterling plunged the most in one week versus the 17-nation currency in anticipation of today’s reports which are expected to reveal that inflation has slowed to the lowest rate in 2 ½ years.
Lastly, the U.S. Dollar gained against the majority of its foreign exchange market counterparts as currency investors sought refuge amid worries that E.U. leaders were struggling to resolve the debt crisis.