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Along with the passage of the debt crisis of the Greek theme, though only temporarily, bring back the risk-appetite of market participants and the reason for the weakening of safe-haven currencies like the Japanese yen and Swiss francs on Friday trading session (seventh) ago.
As is known, the Greek parliament last week through the process of voting proposal finally passed the austerity measures proposed PM George Papandreou. The austerity measures is one of the main conditions to Greece to get the next package of aid funds from the EU and the IMF, Greece much needed funds in order to avoid the threat of default (default).
Also add to the positive sentiment for the dollar is strong U.S. manufacturing sector data released last Friday. The U.S. ISM index for manufacturing sector reportedly rose to 55.3 in June. Figure was better than expectations of economists who previously precisely estimate the index number will drop to about 51.9 from 53.5 in May.
The strong figures of the U.S. ISM data helped ease fears about slowing U.S. economic growth in particular and the world economy in general and increase the guts of the market players to invest in risky assets is higher. The rise of risk-appetite was knocked assets safe-haven.
Swiss franc, the safe-haven favorite, ended down 0.8 percent at 0.8411 per dollar. While the Japanese yen closed down more than 0.3 percent at 80.82 per dollar.
The dollar itself, as one of the safe-haven assets tracked weaker against the euro, sterling and Australian dollars.
With the passage of the theme of the Greek debt crisis, market participants had to temporarily divert its attention to other factors such as factor interest rate differentials between countries. Ahead of the meeting agenda of the European Central Bank's monetary policy, ECB, the euro was eventually regain the support that was lost because of Greece's debt crisis.
ECB expected to raise interest rates at a meeting on 7 July, from 1.25 percent to 1.50 percent. Jean-Claude Trichet, ECB president, has indicated that by mentioning a spell strong vigilance on several occasions.
The rise in ECB interest rates will increasingly widen gap in interest rates between the Euro Zone and the U.S.. The U.S. central bank, the Federal Reserve, is expected to keep interest rates at an extra low level for a longer period of time as an indication of slowing economic growth.
Against the dollar, the euro continued to strengthen for the five consecutive trading days trading session on Friday. Rose to $ 1.4547, its highest since June 10, the euro was eventually closed at 1.4527 against the dollar, rose almost 0.3 percent from opening levels.
Pound, meanwhile, closed up nearly 0.2 percent at 1.6041 against the dollar. While the Australian dollar managed to record a gain of about 0.7 percent to close at 1.0780 against the U.S. dollar.
In other trading, gold is also a favorite safe-haven asset, continues corrected along with the return of the risk-appetite of market participants. The spot price of gold last Friday fell to the lowest range of $ 1477.90 before being closed down nearly 1 percent at $ 1,486.10 per troy ounce in late trading session Friday.
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