Exchange rates and converters
News from money markets
Risk-off prevailed during the Asian and European AM sessions as the possibility of Fed tightening pressured global stock markets. The yen outperformed its G3 peers, having become the prime haven currency of choice following yesterday's dovish turn by the ECB. USD-JPY fell to a nadir of 118.84, the lowest mark since Aug-26, and EUR-JPY posted a new four-month low at 132.58, down 1.8% since yesterday's ECB announcement. AUD-JPY edged out a new low of 82.88, the lowest since the Aug-24 three-year low at 82.09.
The yen is firmer in a pre-U.S. jobs report risk-off theme. Japan's Nikkei 225 revised early session gains and finished with a 2.2% decline, and other Asian markets, and U.S. equity futures and commodity prices, are also down. The possibility of a sufficiently firm jobs report today that would seal a Fed tightening at the mid-month FOMC is feeding a cautious sentiment in markets. Historically, Wall Street tends to wobble during monetary tightening cycles, though recover thereafter. The added concern in the current era is the impact it might have on Chinese markets.
The dollar rallied in early N.Y. trade on Thursday, buoyed initially by the ECB, a much narrowed July trade deficit, and nearly in-line jobless claims. The August services ISM was better than forecasts, and early action saw Wall Street rally, and yields move lower, largely following bund yields lower after dovish ECBspeak. EUR-USD was the driver of dollar gains, as it fell from 1.1235 to better than two-week lows of 1.1088, after the ECB's Draghi spun a very dovish outlook, and opened the door to wider scope in the Bank's QE program.
The ISM manufacturing and services releases this week show that the US economy is resilient in the face of international weakness.
Merrypenny website provides the latest exchange rates from the European Bank (ECB) on daily basis, easy to use online currency converters work flawless on smartphones, tablets and computers.