The Australian dollar and the Canadian dollar remained under pressure Wednesday in Asia as a rout in oil prices continued to weigh on commodity-linked currencies. The euro and the yen, meanwhile, gained as investors unwound their commodity-currency positions that had been funded by the low-interest-rate currencies.
Crude-oil prices were near their lowest levels in almost seven years Wednesday. However, the momentum for selling commodity-related currencies appeared to have subsided somewhat. Still, “chances are high that the selling continues as long as crude stays where they are,” said Michiyoshi Kato, senior vice president of foreign-exchange sales at Mizuho Bank.
The euro EURAUD, +0.1590% rose to 1.5118 Australian dollars from A$1.5095 late Tuesday in New York. The Australian dollar AUDJPY, -0.10% fell to ¥88.60 from ¥88.72. The euro EURCAD, +0.1284% also gained to 1.4806 Canadian dollars from C$1.4800. The Canadian dollar dropped to CADJPY, -0.05% ¥90.42 from ¥90.49.
Market participants are paying attention to the prices of commodities and data indicating their demand and supply.
Source: www.marketwatch.com by Kosaku Narioka