Currency exchange rates for the higher yields have fallen in today's trading, as optimism over recovery is replaced by fears over its sustainability. Following the news that France, Germany, Japan and Hong Kong have emerged from recession, investors began to grow nervous that the rally is too sharp, leading to a decline in commodity prices and higher yielding currency exchange rates.
The Canadian loonie fell for a second day, sliding 1% against the US dollar while the Japanese yen surged to a two week high against the euro. The pound has also sunk 2.5% against the US dollar since the beginning of August amid fears the UK economy is lagging behind. The New York manufacturing index out today showed that manufacturing rose in the New York area for the first time in more than a year.
Currency exchange rates for the Canadian dollar are currently at 0.90USD and 0.55GBP.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.