Small Exchange: Dollar-bloc currencies, India’s forex dips and Macquarie Bank’s misconduct

Peter Terlato 22 May 2017 NEWS

global currencies

This week's currency news rounded up.

Dollar-bloc currencies buck forex trend

The Financial Times reports the currencies of Australia, New Zealand and Canada have ignored the apparent tempered nature of the global foreign exchange market, feeding off each other's weaknesses and losing ground against the US dollar from April this year.

Since the beginning of the second quarter 2017, the Australian dollar has lost 3.5% against the US dollar, while the Canadian dollar dropped 2.8% and the New Zealand dollar fell 2.3%.

However, many other global currencies have strengthened against the US dollar, with the British pound, the euro, the Czech and Danish krona and the Polish zloty all rising by at least 2%.

Bank of Montreal currency strategist Stephen Gallo said the Reserve Bank of New Zealand's decision to leave rates unchanged this month was "the catalyst that led the bloc lower against the dollar in general".

India's forex dips down

Despite reaching record levels earlier in the month, India's foreign exchange reserves slipped during the second week of May. Reserves declined by $443.6 million to $375.27 billion in the week to May 12, 2017.

The Reserve Bank of India attributed the fall to the latest reductions in international currency assets.

Macquarie Bank's "trigger" trading

Australia's Macquarie Bank has agreed to donate $2 million to charity after Australia's corporate watchdog discovered misconduct within the bank's foreign exchange trading division.

The Australian Securities and Investments Commission (ASIC) revealed that between January 2008 and June 2013, Macquarie Bank traders disclosed confidential information about client orders to third parties and divulged details of sizeable Australian dollar trades.

The ACCC also accused traders of attempting to deliberately "trigger" prices, trading in a manner "that may have been intended to cause the trigger price to trade when it might not have traded at that time".

Each week Small Exchange sums up currency news from around the globe and looks into how it impacts exchange rates and options.

Latest money transfers headlines

Picture: Shutterstock

Get more from finder

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site