12072016Wed
Last update: Wed, 07 Dec 2016 05pm

Money and Banking: World

Archive: 

The euro held slightly below three-week highs against the US dollar on Tuesday, following a strong rally on Monday, as investors waited on Thursday's highly anticipated European Central Bank (ECB) meeting. The euro gained on Monday after Italian Prime Minister Matteo Renzi's loss in a referendum over constitutional reform was viewed by traders as expected.
The euro jumped against the US dollar on Monday after Italian Prime Minister Matteo Renzi's loss in a referendum over constitutional reform, a defeat that traders had widely expected. Renzi is set to resign on Monday after the decision. The size of the "No" vote, at 59.1 percent, was more emphatic than had been forecast.
Sterling hit a two-month high against the dollar on Tuesday as investors bet the British government would lose its battle to begin the formal process for leaving the European Union without parliamentary approval. The government has appealed to the Supreme Court to overturn a ruling by another court last month that threatens to derail its Brexit plans.
The euro retreated from a 3-week high on Tuesday while bets on market volatility stayed close to their highest since June's Brexit vote ahead of this week's European Central Bank meeting on its quantitative easing programme. The Australian dollar was the morning's biggest loser, dipping as much as 0.4 percent after the Reserve Bank kept interest rates on hold but sounded a note of caution on the pace of growth.
Interbank buy/sell rates for the taka against the dollar on Tuesday. 78.79-78.80 (previous 78.78-78.80).
Most emerging Asian currencies gained on Tuesday as risk sentiment improved after the euro rebounded when market participants took a view that the selloff after Italy's reform referendum was excessive. Regional currencies found further short-term support from the dollar's broad weakness although robust US economic data cemented expectations that the Federal Reserve would raise interest rates next week.
The euro steadied on Tuesday, having bounced from a near 21-month low set the previous day after Italian Prime Minister Matteo Renzi's loss in a referendum over constitutional reform, an outcome that traders had widely expected. Renzi announced on Monday that he would resign after the resounding defeat in the referendum.