Posted On: July 12, 2012
The value of the shared currency of the European Union dropped to its lowest price in 24 months against the U.S. dollar on Thursday, The Wall Street Journal reports
The Japanese yen gained after the Bank of Japan did not resume asset purchasing. But the central bank of Korea slashed interest rates and economic data issued by Australia indicated the nation's job market unexpectedly fell last month. Minutes from the U.S. Federal Reserve meeting last month, released on Wednesday, indicated that additional quantitative easing is unlikely anytime soon.
"The markets have been fairly disappointed by central banks' timid policy response," senior currency strategist Ian Stannard with Morgan Stanley told The Wall Street Journal. "With many questions still surrounding the Greek situation and the German court's decision on the constitutionality of the European Stability Mechanism, we do not see room for the euro to make gains over the next several weeks."
The Dollar Index, a metric that gauges the strength of the world's reserve currency against rival monetary units, touched its highest rate in two years.
the value of the 17-nation monetary unit fell to its lowest against the U.S. dollar since the middle of 2010.
Category: Industry News
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