The Aussie and New Zealand dollar were the lowest because of monetary loosening from their corresponding central banks.
The greenback began the week strong due to risk aversions caused by the increasing number of recent COVID-19 cases globally, concerns regarding the extensive economic revival, and political ambivalence associated with the upcoming presidential election in the U. S different circumstances. Interestingly, other safe-haven currencies, such as the Japanese yen and the Swiss franc, dropped, joining the rally. Gold, also generally considered to be a safe-haven, was too under pressure.
The Federal Reserve Bank of New Zealand retained monetary policy steady
Although, it frequently signaled that it’s planning for achieving negative interest rates. That made the New Zealand dollar notably weak, though not as vulnerable as the Australian dollar. Managers from the Federal Reserve Bank of Australia were also debating about an interest rate cut. Still, they weren’t sure if negative rates could accurately prop up the economy.
The possible reason why the Australian dollar did worse than its New Zealand equivalent was that analysts don’t expect the RBNZ to perform until the following year. At a similar time, the RBA may cut rates as soon as the next month.
The Great Britain pound was below compulsion from lack of progress in trade talks between the UK and the European Union and the increasing number of coronavirus cases and measures to stop another pandemic.
Turkey’s central bank surprised markets by a distinguished interest rate hike. The lira rose afterward, though the rally has soon diminished.
The pair of Euro and United States Dollar dropped from 1.1846 to 1.1630. USD/JPY climbed from 104.51 to 105.55. GBP/USD fell from 1.2928 to 1.2742. AUD/USD jumped from 0.7296 to 0.7030. NZD/USD collapsed from 0.6764 to 0.6546