Currency Overview Post-Iranian Deal

by on November 26, 2013 2:02 am GMT

The currency markets were active following the deal between Iran and, largely, the United States. The dollar index was up on the day, while the euro and a host of Asian currencies were down.

Protests against Thai Prime Minister Yingluck Shinawatra increased after a continuing fight against questionable policies, including a bill that gave politician amnesty from criminal activity. In response, global funds began to take capital out of Thailand’s equities and debt markets. The USDTHB has hit the target of 32 baht per dollar initiated after the protests first began.

The Indian Rupee rose more than any other emerging market currency on optimism regarding the deal with Iran and concurring moves in the crude space.

The Japanese yen has hit the lowest point in six months against the dollar. The yen sank to four year lows against the euro with the EURJPY trading at 137.93, before making a slight pullback. The selling of yen continues the paradigm of the risk-on/risk-off mentality. The Iran deal sparked a boost in equity markets.

The eurodollar was down on the day and fell to 1.3500 before rising slightly in early Asian trading. The Australian dollar also took a hit, falling to .9122 before bouncing from support. The Aussie dollar gained some momentum and is trading just shy of .9200.