Zloty Hits Record High on Rate Talks

The Polish zloty is facing a scenario different from its neighboring currencies in the Baltics, central Europe and the euro as interest rates may rise in the following months to control the country’s growing inflation, helping the zloty to climb in forex markets this Thursday.
After a Polish government official stated that interest rates may be hiked in the second half of this year to prevent inflation to grow beyond the nation’s targets, the zloty reached the highest price in more than a year versus the currently unattractive euro.
EUR/PLN closed at 3.8963 from an opening rate of 3.9088 this Thursday.

IPO Boosts Demand for Brazilian Real

The Brazilian real is starting this month extending last week’s advance and reverting a negative trend from the beginning of the year, as the appeal for assets in the country are attracting foreign capital inflows and helping the real to beat a number of currencies in
foreign-exchange markets.
Brazil has one of the highest interest rates around the world and renewed appetite for risk in equities markets are allowing the South American currency to post a series of gains versus important currencies with different economic profiles, specially before an IPO in Bovespa which may raise up to $5 billion, considering a significant part of this amount composed by foreign capital. Interest rates in Brazil may rise also in the following months, making the real to repeat last year’s story with the Aussie dollar to rank among the top performing currencies in forex markets.
Optimism is back, and now that pessimism coming from EU’s fiscal crisis and new lending requirements in the U.S. and China cooled down, the scenario for the real has really improved. If risk appetite continues to climb to real may reach new record lows, specially versus the pound and the euro.
USD/BRL closed this Monday at 1.7985 from an opening rate of 1.7995.

Euro Up on Greek Hopes

The euro emerged versus several important currencies as Greece will propose a strategy to solve its budget deficit crisis, declining pessimism among investors to purchase assets in the Eurozone.
The Eurozone had a breather today after Greece, the main responsible for the euro’s most recent downtrends, announced through government officials that decisions are likely to be presented anytime to soon to tighten the countries massive budget deficit, increasing optimism that the fiscal crisis is likely to find a solution in the mid-term.
EUR/USD traded at 1.3633 as of 02:49 GMT from a previous intraday rate of 1.3517.

Chilean Peso Climbs After Earthquake

The Chilean peso oddly profited from a natural tragedy that impacted the country in the first night of this month, as speculations suggest that the reconstruction process in the country, will allow the country’s economy to accelerate.
The South American country is likely to repatriate reserves invested overseas to promote a quicker restructuring in the country after Chile was shook by an earthquake this weekend, allowing the peso to rank among the best performing currencies this Tuesday in forex markets.
USD/CLP closed at 519.05 this Tuesday from an opening rate of 523.25.

Dollar Down after European News

The dollar started this Tuesday losing versus European and
higher-yielding currencies as positive events in the old continent pushed further up risk aversion in trading markets globally, making the pound and the euro to rank among the best performers versus the greenback today.
The pound managed to gain versus the dollar and traded above $1.50 ending the longest losing streak versus the U.S. currency in more than a year, after consumer confidence rose in the country to the highest level since the global slump affected the U.K. in 2008. The dollar has been losing ground this week versus the euro as concerns regarding the Greek crisis decreased, and today, after the country announced further cuts to tighten its budget gap, the Eurozone currency rose.
Much of the dollar’s advance since last December had been consequences caused by lack of optimism in European markets, but, this week, after interest rate speculations decreased in the U.S. and Europe had a breather on bad news, the market scenario is not so favorable for the greenback anymore.
GBP/USD traded at 1.5051 as of 14:01 GMT from 1.4964. EUR/USD traded at 1.3652 from 1.3571.

Consumer Confidence Support Sterling’s Advance

The U.K. currency entered its second day of gains versus most of the main traded currencies after evidences of economic improvements started to appear in the country, increasing appetite for assets in the country, which have been lately affected by grim forecasts towards the kingdom’s economy.
Two positive economic releases helped the pound to beat multiple currencies this week so far after an index of services industries rose to the highest levels since the global slump struck the U.K.’s economy, and a consumer confidence report came with numbers much above forecasts, signaling that despite the country’s budget deficit is rising, the economic dynamism in the country may allow the government to cope more easily what the current financial challenges in the country.

Swedish Krona Down on Eurozone Optimism

The Swedish krona fell for another day this Wednesday as optimism in the Eurozone and negative releases in the Nordic country declined attractiveness regionally for assets in Sweden.
The krona is very likely to end this week posting a drop versus important currencies in Europe after a report in the country showed that Sweden is again having to deal with a recession, declining the odds that interest rates will be hiked in the country anytime soon. The krona had been an option in Europe as the Greek crisis affected market sentiment in the Eurozone, but this week, as Greece proposed new measures to tighten its fiscal deficit, the euro recovered versus the krona.
EUR/SEK traded at 9.7878 as of 14:39 GMT from 9.7700 when markets opened today.