The British Pound fell to a seven-week low against the U.S. Dollar after the World Bank lowered its growth forecast for 2013, thereby bolstering demand for Forex safe havens. The bank, which is based out of Washington, D.C., indicated that the world economy will only expand 2.4% this year, down from a 3% forecast issued in June. Bank officials cited unemployment and low business confidence as the main reasons for the downgrade. The Sterling also weakened against the Euro as Prime Minister David Cameron is in the process of preparing a plan to repatriate powers from the Euro-zone.
Meanwhile, the Yen rallied against the U.S. Dollar for a second consecutive day as leaders around the globe criticized the Bank of Japan’s recent currency moves and indicated that they’ve been excessive. The Yen pared gains due to an increase in risk appetite.
The U.S. Dollar remained low against the Japanese monetary unit subsequent to the release of economic data which revealed that the cost of living in the U.S. has not changed since December. The Consumer Price Index posted a zero reading.
In other day trading news, the Canadian Dollar declined against the majority of its peers as government officials from Russia and Japan issued stern statements criticizing those monetary policies which have contributed to debasing major currencies in an effort to boost economic growth. The Loonie fell the most in one week versus its American counterpart after the Russian central bank warned that the world is on the “cusp of a currency war.”