The Australian dollar has plunged by 1.4% to .7364 after the Reserve Bank of Australia slashed its core inflation forecast to 1% to 2%.
Previously, the RBA forecast a range of 2% to 3%, which is also the official target.
Notably, as Business Insider Australia’s David Scutt reports, pretty much everyone now thinks that the RBA will cut rates again – after cutting to a record-low level of 1.75% last week.
Here’s what the Aussie dollar has been doing in the past few weeks, courtesy of Investing.com and Scutt:
As for the rest of the world, here’s the scoreboard as of 12:41 p.m. ET:
- TheJapanese yenis stronger by 0.5% at 106.69. Notably, on Thursday, Japanese Prime Minister Shinzo Abe said, “We need to carefully watch these movements of the exchange rate and as necessary we would like to respond.” Still, it’s worth noting that the yen is still at historic lows against its trading partners.The dollar index is little changed at 93.66 after the latest jobs report showed that the US economy added 160,000 jobs in April, fewer than expected, while the unemployment rate held steady at 5%. “Weaker data will raise some serious questions about the resilience of the global economy, if the US as ‘locomotive in chief’ is slowing down,” Alan Ruskin, Deutsche Bank’s global head of G-10 FX strategy, wrote in a note.The British pound is weaker by 0.3% at 1.4450 after news that the Labour Party didn’t do so great, losing seats to the Tories nationally in the latest elections. Notably, Gary Klopfenstein, the CEO of Berenberg Asset Management, the management branch of the world’s second-oldest bank still in existence, told Business Insider that while most folks aren’t too worried about a British exit from the European Union, some are worried about the possibility of a single, random event that could create a knee-jerk reaction right before the vote. The Polish zloty is weaker by 0.5% at 3.8808 per dollar after the country’s central bank held its benchmark interest rate unchanged at 1.50% for the 14th straight month, as expected. Additionally, the president named Adam Glapinski as the new central bank head. “Accordingly, we remain comfortable with our view that the policy rate will be left unchanged both this year and next,” Capital Economics’ William Jackson argued in a note.