Posted May 12, 2023 16:22PM
Updated May 12, 2023 18:10 ET
Huge losses for the New Zealand dollar in the currency market today, what is the reason?
Arabictrader.com – Three of the eight major currencies traded in the forex market suffered varying losses today, Friday, in the last American week’s sessions.
The New Zealand dollar witnessed the largest volume of losses after the sharp decline it witnessed against all other currencies, followed by the Australian dollar in second place, followed by the Japanese yen, which incurred the least losses.
In terms of the size of the losses incurred by the three currencies, their decline rates ranged between 0.33% and 6.19%, and the following are the main reasons that prompted each currency to incur these losses:
The New Zealand dollar is the highest major currency loss / h2
The New Zealand kiwi opened the American session today with heavy losses today, as the New Zealand dollar fell by 6.19% against other currencies, affected by the decline in risk appetite.
This decline came mainly on the back of the release of the results of the Reserve Bank of New Zealand survey this morning, which indicated a significant decline in inflation expectations in New Zealand during the next quarter, as it fell to 2.79%, compared to previous expectations, which indicated that it would reach 3.30%.
This led to a sharp decline in the New Zealand currency, as it reinforced investors’ expectations that the Reserve Bank of New Zealand may not raise interest rates at its next meeting, at a time when most of the major banks continue to continue monetary tightening measures.--
The Australian dollar is the second losing currency / h2
The Australian dollar also witnessed losses, for the fourth consecutive session this week, as negative data continued in China, which reinforced expectations that the Chinese economy may lose its upward momentum in the second half of the year, which led to more losses for the Australian dollar, as a result of the strength of trade relations between the two countries. .
The Australian dollar also declined due to the decrease in risk appetite in the currency market trading today, which negatively affected commodity currencies, of which the Australian dollar is one, to decline by 0.40%.
The Japanese yen is the least losing currency/h2
Today, the Japanese currency suffered the least losses among its counterparts among the major currencies at the beginning of the American session, as it witnessed losses of 0.33%.
The losses of the Japanese yen came despite the decline in risk appetite, as a result of the large losses of the Japanese yen against the British pound and the US dollar, as well as its counterpart in safe havens, the Swiss franc.
See the original article
Get the app
Join the millions of users who get the latest market news at full speed on Investing.com
Written by: Arab trader