CANBERA (dpa-AFX) - Analysts at Westpac noted on Wednesday that the US dollar erased its overnight gains in Asia as the market shrugged off Moody's downgrade of Portugal's credit rating to junk status and the placement of it on the negative watch list. Traders also paid little reaction to Moody's warning that the banks involved in Greek debt roll over may have to record impairment charges.
The international banks and insurers meeting chaired by the Institute of International Finance held in Paris today gets significant attention.
EUR/USD rose to 1.4467, while AUD/USD advanced to 1.0734 and the NZD was the top G10 performer, with NZD/USD hitting as high as 0.8302. The majors outperformed as strong equity market gains lifted sentiment, with the Nikkei gaining over 1 percent to hit its highest level since March 14.
USD/Asia was under pressure despite the Portugal downgrade overnight. USD/PHP has moved down around 0.5 percent to 42.90/95 in the 1-month Non-Deliverable Forward, following upbeat comments on local stock market outlook by Philippines President Aquino. The president indicated the domestic bourse could rise to the 5000 level this year from its current level of 4400. The 1-month USD/KRW fell around 0.35 percent to 1065.
Elsewhere, Asian currencies were modestly higher against the USD except USD/CNY that was little changed despite a higher than expected fix. The 12-month USD/CNY Non-Deliverable Forward hovers around the 6.3800 region at close.
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© 2011 AFX News
