Commodity currencies dragged down by Doha meeting
On Monday, commodity currencies fell along with the Japanese yen after key crude exporters didn’t manage to agree on a production freeze, thus sending crude prices down once again.
A plan for crude producer to suspend production at a gathering in Doha ruined on Sunday, when Saudi Arabia announced Iran was to join the initiative. As a result, the OPEC’s reputation was hurt and the world is still awash with oil.
With a 5% decrease in oil prices suppressing risk appetite across markets, many investors chose the yean as refuge. As a result, the major Japanese currency showed a three year peak against the common currency and also traded close to a year peak against the greenback.
The Canadian dollar lost one percent, trading at C$1.2948 against its American counterpart, while the Australian dollar sagged 0.7% at $0.7673.
The failure to reach a deal at Doha gave major banks grounds to discuss further easing, due to the deflationary effect of dropping oil.
The euro went up 0.2%, trading at $1.1300, though it dipped against the yen.