US dollar jumped on Wednesday versus its major rivals in reaction to disappointing Spanish bond auction while ECB’s President, Mario Draghi said that central bank is nothing thinking to quit its accommodative monetary policy.
Draghi commented that rising inflation in euro zone is major risk for the region’s growth and bank’s non-standard measures which includes liquidity measures. Further to add, sharp increase in yields of Spanish and Italian bonds created more uncertainty among investors.
The euro declined to 1.3139 against the US dollar on Wednesday as compared to 1.3231 on Tuesday’s late trading hours.
The ICE dollar index DXY which tracks the greenback’s movement versus its six major rival currencies surged to 79.764 on Wednesday as compared to 79.410 in Tuesday’s North American trading session.
Among other currencies, the British Pound fell to 1.5890 against the US dollar as compared to 1.5901 on late Tuesday. The Pound Sterling remained lower in reaction to the comments of the British Chambers of Commerce report according to which more support is needed for UK’s private sector.
The US dollar however remained lower versus the Japanese yen in reaction to bearish stock markets around the globe. The greenback fell to 82.49 against the Japanese yen on Wednesday as compared to 82.87 on late Tuesday.
The Australian dollar fell to 1.0256 against the US dollar on Wednesday as compared o 1.0309 on late Tuesday.