The euro held gains against most of its major counterparts. Risk aversion and the slump in commodities prices means that investors will favor developed-nation currencies over emerging and commodities currencies.
EUR/USD rose to $1.0920 in Asian session trading on Wednesday.
A decline in oil and iron ore prices since the end of last month has dimmed the allure of commodity currencies, driving the Canadian dollar to an 11-year low Tuesday and the Aussie to its biggest two-day drop in almost six weeks.
Canada’s currency was little changed at C$1.3567 per U.S. dollar from Tuesday, when it touched C$1.3622, the lowest since June 2004. The Aussie bought 72.21 U.S. cents from 72.15, after completing a two-day slide of 1.7 percent, the biggest since Oct. 28.
In other currencies, USD/JPY traded down from 123.05 down to 122.69. EUR/JPY traded a small range between 133.81-134.00, still consolidating after last week’s post-ECB rally. GBP/USD was steady in Asia after a fall yesterday on weak UK manufacturing output data. The pair traded a 1.5005-24 range.
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