Investors Play Safe As Equity Markets Fall

Monday, 22nd August 2011

Gold that was once considered to be a safe investment in the past has made a comeback with investors preferring to invest in it along with safe currencies like the Swiss Franc and the Yen as against Korean Won or the Australian dollar. US Dollar is not too far behind. However, the trading with the Franc has not risen too high owing to the measures taken by the Swiss National Bank thereby weakening the Franc. Similarly, in the case of the Yen, after the comments of the Japanese Finance Minister, it is expected that the Bank of Japan will take similar measures.

As a consequence of this, Euro, the Australian and New Zealand Dollars have not found much favor in the Asian market.

More specifically, trading of Euro against USD was at $ 1.4310 in Tokyo, showing a decline of 0.2%. The news that emergency funds worth $500 million have been loaned by the ECB to a Eurozone caused the Euro to plummet. This has caused a loss of nearly 0.9%.

As of now, the currency news is that USD is better placed than the Australian Dollar. The USD trading is approximately 0.1% higher than Australian Dollar at $1.0359. Similarly, an increase of 0.1% at $ 0.82818 has been seen with the greenback going higher as against New Zealand Dollar.