Currency Exchange Rate Update-Euro/USD,USD/JPY,AUD/JPY Rise

The Euro-USD exchange rate overturned the pattern prevalent over the past few days as it now finally appreciated. The exchange rate rose by 0.0260 percent to USD $ 1.4160.

The Euro declined against 11 out of 16 other major currencies, amidst concerns about a possible restructuring of Greece’s debt. The Euro-USD exchange rate declined by 0.1562 percent to $ 1.4097.

An increase in the value of the Euro was brought about by expectations that the European Central Bank would raise interest rates. Inflation levels are rising in Europe. For instance, in Germany, producer prices increased by 0.6 percent in April, after increasing by 0.4 percent in March. There is a widespread belief that the European Central Bank would raise interest rates in order to reduce the price hike. Expectations of such a move has triggered the demand of Euro as opposed to the US Dollar,

The USD-JPY exchange rate rose by 0.6384 percent to 81.3058 Yen. The US Dollar was boosted by expectations that reports to be released by the US Federal Reserve will show an increase in industrial production in April.

The Aussie reversed its declining trend against major currencies, registering advances against 12 of its 16 major currencies. The AUD-JPY exchange rate was at 85.4221 Yen.

The AUD advanced after the Australian Central Bank conceded that raising interest rates would be imminent in the near future if the economy continues to perform well at the expected levels of inflation. Also, a decline of the Euro due to Greece’s sovereign debt issues have increased the demand of the Australian Dollar, boosting its demand.