Emerging currencies see declines

Major currencies saw little movement on Monday while emerging currencies declined amid a lack of new data. Some analysts put the losses to profit-taking, while others cited Friday’s healthy retail sales data from the United States and accompanying talk of further interest rate rises there.

The Polish zloty and the Czech koruna each dropped 0.3 percent in relation to the euro, to 3.876 zlotys and Kc28.975 respectively. The Hungarian forint was 0.9 percent lower versus the euro, to Ft272.6.

Meanwhile, the South African rand and the Australian and New Zealand dollars were all lower against the US dollar. The rand dropped 0.8 percent to R6.8375 as the prices for gold and other commodities dropped. The Australian dollar was 0.7 percent lower to $0.7596. Meanwhile, the Kiwi lost 0.3 percent to $0.6310 after rising to $0.6373, a ten-week high, as retail sales date came in higher than had been expected.

Sterling was down early after factory gate inflation data implied that UK manufacturers are having trouble passing their higher costs on to consumers, but the British currency later rose to end the session only fractionally weaker against the dollar and the euro, to $1.8892 and £0.6737 respectively.

The euro was little changed versus the US dollar at $1.2729, while the Swiss franc remained at SFr1.5795 against the euro and at SFr1.2413 in relation to the greenback.

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