Friday saw South Pacific monetary units suffer from threats to euro zone economies' credit ratings as the dollars of Australia and New Zealand slipped to the greenback, according to Bloomberg.
When the euro zone's second-largest economy, that of France, was noted as losing its unblemished AAA rating, losses to the Kiwi from Thursday continued for a second day. The top economy of the euro zone is hosted by Germany, which is not expected to suffer the wrath of a credit slash, a European government official told Bloomberg.
One currency strategist noted there remain risks to the economy of Europe as well as the broader global economy.
"That suggests that there’s a cap on commodity prices and commodity currencies like the Aussie and kiwi," currency strategist Joseph Capurso at Commonwealth Bank of Australia in Sydney told Bloomberg.
The Australian dollar began Friday on the uptick as a consequence of a productive meeting in Europe, The Herald Sun reports. And Mario Draghi, president of the European Central Bank, noted strategies of minimizing debt scourge damage appear to be serving their purposes.
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