The Yen traded close to the lowest level against the U.S. Dollar since May of 2010 after private reports indicated that U.S. companies added more employees than predicted in February. This also rekindled speculation the Federal Reserve may consider winding down the stimulus program in the near future. In the meantime, the Euro fell versus the greenback as industry data revealed that the Euro region’s economy contracted 0.6% in the last quarter of 2012, and exports declined for the first time in three years.
Other currency exchange news indicated that Canada’s Dollar came close to trading at the weakest price in eight months versus its American counterpart after the Bank of Canada announced it would not increase the cost of borrowing money any time soon, as the rate of inflation slowed more than previously forecast. The Loonie declined against the majority of its money market counterparts after the central bank’s Governor, Mark Carney, eased up on discussing tighter monetary policy.
Elsewhere in the exchange, the British Pound dropped for the first time in three days against the greenback as the Bank of England’s policy makers began their two-day meeting during which a decision on whether to increase stimulus to bolster economic growth is expected. The Sterling dipped against the majority of the majors on speculation the central bank will augment the asset-purchasing program to at least 400 billion Pounds.
Lastly, the Australian Dollar rose to the highest rate in one week against the Yen as market investors pared forecasts for interest rate reductions this year.