World Currencies

Japanese Currency

Today the yen traded near a three-week high on speculation that the European officials will speak out that the Japan's currency is too weak and its interest rates are too low at a meeting of the Group of Seven nations this week.

The yen is the fourth-best performer of the 16 most- active currencies in the past five days as traders raised bets thinking that the central bank will increase borrowing costs this month. Japan's currency has added 1.1 percent in the past five days.

Well, the Yen is near to the Three-Week High as G-7 May Focus on Japan's Low Rate. Still three more days left to the G7 Meeting ---Till then if the Yen recovers and continues to the best performer there is a scope of the Europeans maintaining silence when it’s the issue of the Yen.

Opinion:

In my opinion, if the Japanese Currency does well in these two more days, then there will not be any issue in the G7 Meeting.

U.K Currency

The U.K. pound fell from near a 10- day high versus the dollar after a report which showed that the services growth in Europe's second-biggest economy slowed last month.

The pound rose last week after U.K. factory production unexpectedly accelerated. Traders have raised their bets expecting the interest-rates are going to increase more in future after the Bank of England raised its benchmark rate for the third time in five months in January to fight against the fastest inflation in a decade.

The investors anticipate that in future there may be another increase by the end of March.

Opinion

In my opinion the U.K currency is sure to rise in couple of days.

The Australian Currency

The Australian dollar fell to the lowest in more than three weeks against the yen as traders bought Japan's currency before a Group of Seven meeting this weekend.

Traders are unwinding yen carry trades, where they borrow a lower-yielding currency to invest in a higher-yielding one, ahead of the G-7 meeting, because European officials are complaining the yen is too cheap.

Australia's currency has dropped 3.3 percent against the yen making it a high in this year from January. With the Current Yen’s strength, many are seeing that there will be a downside pressure to the Australian dollar

Opinion

Oh!! Yeah In my opinion there is concern about the Australian Dollar; the Australian dollar should take some measures to prevent its downfall, if not it may have to lift some more losses ahead.