The same problems of the US and Europe’s economies that spurred demand for safety caused the Australian dollar to drop today for the second day.
Currently demand for safer assets prevails on markets, reducing appeal of currencies linked to growth, including the Australian dollar. Otto Fricke, member of the German parliament, said yesterday that Greece may face default by the end of the summer. The MSCI Asia Pacific Index of shares contracted 1.21 percent, falling for the third day. The Aussie, together with the New Zealand dollar, was the worst performer against the Japanese yen today.
AUD/USD fell from 1.0507 to 1.0442 today and traded at about 1.0496 as of 9:36 GMT. AUD/JPY dropped from 86.83 to 86.07 before trading at 86.63.
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