Euro holds gains

During today’s New York session, the euro maintained it gains in thin trading, after an official of the European Central Bank (ECB) gave a hint of another wave stimulus, while the uncertainties about China’s economy affected the yuan.

An executive board member of the ECB Yves Mersch quoted policy makers have “by no means used up all our ammunition” this was taken from an excerpt of International Banker’s Forum interview.

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The chance of more easing which might weaken euro came after the disappointing limited scope of its newest bid by the ECB to help the struggling euro zone economy recuperate.

There was a surge of the euro in the wake of the ECB’s below expectation policy measures.

According to Jason Wong, a currency strategist at Bank of New Zealand “In their last big statement, they didn’t deliver what the markets were expecting.

In the Tokyo session on Tuesday, it was valued $1.0980 against the New York session which was $1.0970, while it edged up to 132.15 yen from 132.05 yen

There has been a near 4% surge of the euro against the dollar, its best showing since April.

The dollar fell to 120.26 yen in other sessions from 120.38 yen, while the  yuan fell to 6.5675 against the dollar from 6.488 on Monday.

Oil prices fell on Monday hitting market sentiments, following a decline in China’s industrial firms profits which escalated worries about China, which is the world’s number two economy and a key driver of global growth.

Also there was a 0.17% fall of the Indonesian rupiah against the usd and 0.22% fall of the South Korean won, while the Indian rupee rose by 0.02% and the Malaysian ringgit rose by 0.09%.

 

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