Daily forex news

Daily forex news | 30 November 2009 - 9:30 GMT

Dealing desk insight

The yen and dollar fell against higher-yielding currencies after the United Arab Emirates’ central bank said it "stands behind" the country’s banks, easing concern about a default by state-owned Dubai World. The yen fell to 129.87 per euro as of 7:40 a.m. in London, from 129.67 on Nov. 27 in New York.

The euro advanced for the first time in five days against the yen after the Abu Dhabi-based central bank of the U.A.E. said lenders will be able to borrow using a special facility tied to their current accounts. The euro strengthened to $1.5068, from $1.4988. The yen gained to 86.21 per dollar, from 86.53. It rose to a 14-year high of 84.83 on Nov. 27.

The Australian and New Zealand dollars rallied as demand for riskier assets increased due to allayed concern over credit losses in the Middle East. Australia’s dollar jumped to 91.91 U.S. cents, from 90.63 cents and strengthened to 79.25 yen, from 78.43. New Zealand’s dollar advanced to 72.08 U.S. cents, from 71.11 cents, and gained to 62.16 yen, from 61.52 yen.

Gold may resume its advance above $1,200 an ounce this year as the dollar weakens against global currencies. Bullion for immediate delivery tumbled as much as 4.2 percent on Nov. 27 after Dubai’s efforts to reschedule its debt rattled investors, sending the dollar up 1 percent against a basket of six major currencies. Gold, which reached an all-time high of $1,195.13 on Nov. 26, traded at $1,176.96 an ounce at 11:41 a.m. in Singapore.