By Anjli Raval
Published: December 29 2009 11:34 | Last updated: December 29 2009 11:41
The euro and higher yielding currencies such as the Australian dollar were lifted against the US dollar after improved risk appetite on Tuesday.
Although trading volumes were thin in a calmer year-end market, the euro was 0.4 per cent higher against the dollar at $1.44 and up 0.3 per cent against the pound at £0.9007. Sterling was flat against the dollar at $1.5999.
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Riskier currencies improved as commodities regained some strength. The Australian dollar was 0.9 per cent higher at $0.8951, while the New Zealand dollar also advanced 0.9 per cent to $0.7037.
Analysts at Action Economics said: “The commodity market complex rose amid increasing expectations of China demand after it said last week that it had to revise up its growth forecast and should underpin commodity bloc currencies generally as some proprietary names look towards positioning for the coming year.”
The Norwegian krone stood at NKr5.7690, up 0.5 per cent against the US dollar, while Sweden’s krona was up 0.4 per cent at SKr7.1800. The South African rand was 0.4 per cent higher at R7.4460.
The US dollar stayed supported against the yen, nearing the two-month high of Y91.88 set last week, on the view that the US economy was recovering well. The dollar was steady against the yen at Y91.70.
Elsewhere, the Swiss franc traded firmer against both the US currency and the euro. The franc, which is regarded as a safe-haven currency, advanced 0.3 per cent to SFr1.0318 against the dollar and up 0.1 per cent against the euro at 1.4883.
