By TraderVox.com
Tradervox (Dublin) – The 17-nation currency was up against most majors yesterday before the G7 conference call meeting aimed at discussing the current debt crisis in the region. This has brought some risk appetite in the market with the current Asian currency surge leading to the strengthening of the Asia Pacific currencies.
Yesterday’s reduction in the interest rate by the Reserve Bank of Australia also caused the Australian dollar to increase against the US dollar and the euro. However, attention was given to the G7 talk held yesterday by seven finance ministers and central bank governors as they deliberated on the European crisis leading to euro advance.
Some currency strategists had indicated that the conference call would touch on the ongoing crisis, which increased investor confidence in the region leading some buying of the euro. According to Lee Wai Tuck who is a Currency Strategist at Forecast Pte in Singapore, this is set to bring short covering in the euro that is set to stop last week’s decline. Investors will, however, keep an eye on the proceeding and look for any new measures that might be suggested. Any new measure proposed from the G7 conference call meeting will end bets that the euro will continue to decline.
Prior to the meeting the 17-nation currency strengthened against the greenback by 0.2 percent to exchange at $1.2522 from the previous day close of $1.2499. The euro had fallen to new lows as crisis in Spain and Greece continued to escalate. The euro was also strong against the yen, adding 0.1 percent to trade at 98.06. The yen was little changed against its safe haven counterpart, the US dollar, exchanging at 78.32 yen per dollar.
It has been revealed that the G7 nations have been holding conference calls in preparation for the G20 meeting to be held later in the month. According to Canadian Finance Minister Jim Flaherty, the meetings were focusing on the European debt crisis.
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