The dollar was subjected to massive sales on the best day on Wall Street since the beginning of the year in which all major stock indices added over 2%
Catalyst risk appetite was growing speculation that the leading central banks will take decisive action against the limitation of the effects of European debt crisis.
ECB left interest rates unchanged in the Eurozone on 1% but the subsequent comment on Dear President Mario left the impression that interest ahead decrease in the short term. Dear said the risks to the region’s economies grow and inflation will fall below 2% target in early 2013, and that some members of the Executive Council of the ECB support any reduction in interest rates. President of the Atlanta Fed’s Lockhart made a similar comment, saying the central bank may need to plan additional incentives for signs of significant economic slowdown.
The euro rallied 1% to $ 1.2582, which was his best performance of the day nearly three months, single currency and overall risk assets were further supported by rumors that the EU and Germany will support a rescue plan for Spanish banks, which will require additional budget restrictions.
The Australian dollar jumped 2% against the USD namesake to 0.9926 after the country’s GDP surged by 4.3 percent in the first quarter a year earlier. Optimistic data for the Australian economy was underpinned by improvements in the labor market and as a result the Australian still rising. The Canadian dollar is also among the winners currencies backed by a breakthrough in the price of Brent oil above $ 100 a barrel.
Best loser was the yen, which depreciated from 98.05 to 99.61 to a Euro account and even the otherwise weak dollar to 79.18.