💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

FOREX-Oil drop plucks loonie; rupiah slips after Jakarta blasts

Published 14/01/2016, 04:23 pm
© Reuters.  FOREX-Oil drop plucks loonie; rupiah slips after Jakarta blasts
EUR/USD
-
USD/JPY
-
USD/CAD
-
LCO
-

* Canadian dollar on defensive as oil prices fall further

* Loonie touches its lowest level since April 2003

* Sterling awaits outcome of BOE's first policy review for 2016

* Indonesian rupiah slips after Jakarta explosions, gunbattle (Updates prices, adds comments)

By Masayuki Kitano and Ian Chua

SINGAPORE/SYDNEY, Jan 14 (Reuters) - The Canadian dollar fell to its lowest level since April 2003 on Thursday as oil prices extended losses, while the Indonesian rupiah slipped after militant attacks in Jakarta.

The rupiah fell about 1 percent against the dollar at one point to as low as 13,960 IDR=ID after several explosions and gunfire were heard in the centre of the Indonesian capital, witnesses told Reuters. the initial reaction among major currencies was relatively limited, market participants said this could add to the risk averse sentiment in the market, which has been roiled this month by renewed concerns about China's economic health and the outlook for global growth.

"If this turns out to be something that has occurred on a very large scale, equities could fall and spur buying of the dollar, as well as the yen," said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore.

The dollar was last down 0.2 percent on the day at 117.47 yen JPY= .

The low-yielding yen tends to gain in times of market stress as it is often used as a funding currency for investment in risk assets, and consequently can rise when there is a retreat from such assets.

The euro edged up 0.1 percent on the day to $1.0888 EUR= .

CANADIAN DOLLAR, STERLING

The Canadian dollar CAD=D4 slipped to as low as C$1.4382 per U.S. dollar.

Investors have taken aim at the loonie after Brent crude dipped below $30 a barrel on Wednesday for the first time since April 2004, fuelling speculation the Bank of Canada could cut interest rates as early as next week.

Brent crude extended its losses in Asian trade on Thursday and marked another 12-year low. market gave sterling a wide berth even though the consensus is for the BOE to leave interest rates on hold at its first monetary policy decision of the year on Thursday.

Some investors suspect the central bank may sound more dovish given the uncertain global backdrop.

Sterling eased 0.1 percent to $1.4398 GBP=D4 . Earlier this week, it fell to $1.4352, its lowest level since June 2010.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.