The Australian dollar slipped today against most major currencies on concerns about the European sovereign issues and as the Asian stocks fell after Singapore signaled about possible tightening.
The Monetary Authority of Singapore stated in its Monetary Policy Statement the “policy will ensure price stability in the medium term while keeping growth on a sustainable path”. The government will allow faster appreciation of the nation’s currency but the trading band will be kept unchanged. The MSCI Asia Pacific Index of shares fell 0.4 percent, while the Nikkei 225 Stock Average slid 0.5 percent.
Demand for commodity currencies, including the Aussie, also fell after Germanyâs newspaper said that the restructuring of Greece’s sovereign debt may cause losses of 50 to 70 percent for investors. Germany’s Finance Minister Wolfgang Schaeuble told Germanyâs Die Welt newspaper that further austerity measures may be demanded from Greece if the nation wouldn’t be able to resolve its debt issues.
AUD/USD fell from 1.0504 to 1.0479 as of 2:10 GMT after reaching the intraday low of 1.0457. EUR/AUD rose from 1.3744 to 1.3770. Meanwhile, AUD/JPY dropped from 88.05 to 87.46.
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