The Australian dollar fell to its weakest this year today and bond yields dropped as concern stirred when Greek leaders will be unable to form a coalition government, reducing the appetite for riskier assets (Aquino & Saraiva, 2012).
“Risk is going to be on the back foot while the Greek squabbles continue,” said Joseph Capurso, a strategist in Sydney at Commonwealth Bank of Australia. (CBA) “I don’t have a lot of optimism that these things will be resolved quickly. It’s pulling down many currencies like the Aussie, the kiwi and the Canadian dollar, which are more linked to global growth” (Aquino & Saraiva, 2012)
The Australian dollar fell to $1.0066, its lowest level since Dec. 29, before trading at $1.0077 at 11:42 a.m. in Sydney, 0.4% below yesterday’s close. Against the Yen, it lost 0.4& to 80.50 yen (Aquino & Saraiva, 2012).
Also the Pound dropped 0.3% to $1.6135 after rising to $1.6302 on April 30, the highest level since Aug. 31. Sterling appreciated 0.2% to 80.47 pence per euro. It climbed to 80.36 pence yesterday, the strongest since November 2008 (Jenkins, 2012).
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