The kiwi skidded to a six-week low after the country's central bank switched to a wait-and-see stance following its fourth rate hike.» Read More
Currency experts have warned that there will be winners and losers in the foreign exchange markets on the back of the spike in oil.
Currency analysts to believe an interesting trading opportunity could develop over the coming months.
The U.S. dollar held onto modest gains, having risen broadly after U.S. consumer prices recorded their largest increase in more than a year in May.
The Australian dollar has stubbornly resisted broad expectations it would weaken, and now some bears are starting to step away from their calls.
Geoff Kendrick, Head of Asia FX & Rates Strategy at Morgan Stanley, describes the factors that are spurring strong inflows into Australia, which will eventually be positive for its currency.
The Australian dollar fell more than half a percent against the U.S. dollar on Tuesday after the RBA expressed economic recovery doubts.
*Caution ahead of Fed meeting, concerns about Iraq crisis. LONDON, June 17- The Australian dollar fell more than half a percent against the U.S. dollar on Tuesday after minutes from the country's central bank expressed more doubts about what is proving to be a messy economic recovery.
Ray Attrill, Co-Head of FX Strategy at National Australia Bank, says predictions for the Australian dollar to hit parity by year end are "exaggerated."
The dollar dipped versus the yen, although potentially decisive events such as the Federal Reserve meeting midweek limited movements.
The dollar was up around a third of a percent against the yen as markets listened to the Bank of Japan's latest comments on policy on Friday.
The U.K.'s pound has roared higher as Mark Carney, the governor of the Bank of England, surprised markets.
Retail sales missed expectations, and state unemployment benefits claims climbed higher than expected.
Hamish Pepper, Forex Strategist, Asia Pacific at Barclays and Daryl Guppy of Guppytraders.com, debate the direction of the Australian dollar.
The euro neared a four-month low versus the dollar and a 1-1/2 year trough against sterling on Wednesday.
The dollar extended gains against the euro, amid expectations that the Federal Reserve could raise rates sooner than expected.
The euro weakened against the dollar, as yield differentials between Treasuries and Bunds widened to multi-year highs.
The euro rose against the dollar and the yen on Monday, on confidence that the ECB will not be easing policy again soon.
The euro languished near four-month lows after the European Central Bank's loosened monetary policy.
The dollar rose, getting a lift from fatter Treasury yields and investor anxieties about policy shifts from the ECB.
David Forrester, Senior Vice President, G10 FX Strategy at Macquarie, says a stronger domestic economy will support the currency going forward.