Five of the eight major currencies suffered major losses on Wednesday. At the beginning of the American session of the global currency market.
The New Zealand dollar came at the forefront of the losing currencies today, and the US dollar came in second place in terms of the size of its losses in the currency market.
The following are the main reasons behind the obvious losses for each of the five currencies during today’s currency market trading:
New Zealand dollar
The New Zealand dollar lost ground during the American session of the currency market today, as it witnessed a decline of 2.18% against the other seven major currencies. This decline comes in light of the statements of Reserve Bank of New Zealand Governor Adrian Orr that the bank’s previous monetary policy has played a role in the extremely high inflation rate in the country.
In a press release, Orr acknowledged that consumer price inflation reached 7.3%, which is above the target range set by the Reserve of New Zealand of 1-3%, and these statements had a negative impact on the performance of the New Zealand currency today.
The US dollar lost noticeably during today’s trading against most of the other major currencies in the forex market in light of the anticipation of the US Federal Reserve data regarding raising interest rates, in addition to investors’ fears of negative recession expectations, especially after the emergence of negative data regarding economic growth in the United States and the world. Today the US dollar lost 1.32% against the other seven major currencies.
The Swiss franc’s decline comes in light of the high inflation rate in Switzerland and in light of the high risk appetite in the markets, following the wait for the US Federal Reserve’s data on raising interest rates, which in turn negatively affected the Swiss franc trading as a safe haven, as the Swiss franc witnessed a decline of 0.65% against currencies. Seven major.
The Australian dollar is also witnessing a decline of 0.24% against the major currencies during today’s trading. This decline comes in light of the release of inflation data in the country this morning, where the consumer price index rose by 1.8%, while expectations indicated a rise by 1.9%, which is less than expected. This increases expectations that the Australian Reserve will not raise interest rates during the coming period, which in turn negatively affects the Australian dollar.
The Japanese yen recorded a loss of 0.21% against the rest of the major currencies today. As data from the health authorities in Japan revealed today, Wednesday, that the country recorded about 209694 new infections with the emerging Corona virus during the past twenty-four hours, which is the highest daily rate of Corona virus infections inside the country since the outbreak of the pandemic, which reinforces fears of closure and economic stagnation in Japan and affects in turn. on the performance of the Japanese currency.