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18 Apr

Doha Reunion Makes Downward Commodity Currencies

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Doha reunion makes downward commodity currencies
 
  1. CAD, AUD slide as oil slumps
  2. Japan, Yen hits 3-year high vs. euro on risk hatred
  3. Oil producers not succeed to agree on output freeze
 
LONDON, April 18 Commodity currencies drooping on Monday and the refuge yen soared after key crude exporters unsuccessful to agree on an output freeze, transfer oil prices plummeting yet again.
 
A sketch for oil producers to freeze production at a conference in Doha fell apart on Sunday after Saudi Arabia commanded that Iran join in, departure the reliability of the OPEC producer cartel in tatters & the world awash with discarded fuel.
 
 
In the midst of a 5 % fall in crude prices deplete risk appetite across marketplace, investors sought after asylum in the yen, which hit a 3 yrs high against the euro & traded close to a 1-1/2-year high against the dollar. 
 
By 07:30 GMT it was up 0.6 % at 109.16 yen per dollar.
 
The Canadian dollar slew by 1 % to 1.2948 CAD versus its U.S. equivalent, while the Australian dollar fell 0.7 % to 0.7673 USD.
 
"Following the Doha meeting, we've perceive some clear risk-off sentiment approaching into the day, with commodity currencies down," thought Commerzbank currency strategist Esther Reichelt, in Frankfurt.
 
Reichelt added that the stoppage to reach an agreement at Doha was likely to urge central banks such as Sweden's Riksbank to talk about further reduction, because of the deflationary consequence of lower oil prices.
 
The euro inched up 0.2 % to 1.1300 USD. Except against the yen, it fell by as much as 1 % to a low of 121.71 JPY. That was the lowest since April 4, 2013 - the day the Bank of Japan launched its enormous asset buying program.
 
The US presented a cool response to concerns expressed by Tokyo that the yen's gains are too sharp & may give reason for intervention, with Treasury Secretary Jack Lew motto at a G20 meeting on Friday that he did not notice any disorderly moves in the currency market.
 
The result of the G20 meeting & falls in Japanese equities on worry about the economic impact from lethal earthquakes in southern Japan are negative for the dollar against the yen, said Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo.
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