By TraderVox.com
Tradervox (Dublin) – The G7 conference call meeting held yesterday concluded to lead a global coordinated effort to save Europe from the recent crisis that has sent almost eight nations in the region into recession. This has damped safe haven appetite in the market leading to the decline of the yen and dollar. The two safe haven currencies slid against most of the major currencies after the meeting. Further, the dollar index fell after Charles Evans, the Federal Reserve Bank of Chicago President, indicated that the US economy will require an extremely strong accommodation if it is to sail through the current looming crisis that may be instigated by euro area countries.
The yen lost for the third day against the euro after Japanese Finance Minister jun Azumi indicated that the government will take decisive measures to stop the recent strengthening. He further indicated that Japan would support euro area nations to solve the current crisis in the region. He urged euro area leaders to do more to address investors’ concerns about the finances in the region. The Australian currency continued with its gain after a report from the nation showed that the economy grew more than market expectation.
According to Azumi, the Group of Seven Finance Ministers and Central Bankers agreed to help Spain and Greece to restore their financial system into a sustainable level. This came a day before the European Central Bank policy makers meet today to decide on the region’s borrowing cost. It is expected that they will keep the current interest rate of 1 percent.
After the G7 meeting, the greenback dropped 0.4 percent against the euro to exchange at $1.2503 at the start of the London Session. However, the US dollar increased against the yen by 0.4 percent to trade at 79.08 yen per dollar. The yen declined by 0.9 percent against the euro to exchange at 98.93 yen per euro. The Aussie increased by 1.2 percent against the US dollar to trade at 98.54 US cents and added 1.7 percent against the yen to trade at 77.99 yen.
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