The euro gained against both the U.S. dollar and Japanese Yen on Thursday after a move by central banks on Wednesday to ease lending to banks and increase the flow of the dollar eased strains on the global market .
On Wednesday it was announced that the Federal Reserve along with the European Central Bank, the Bank of England and central banks from Canada, Japan and Switzerland would lower the premium for lenders to borrow dollars overnight by half a percentage point to 50 basis points. The dollar swap lines will now be extended to February 1st, 2012.
The move is aimed at increasing the flow of dollars around the world and stimulate the world’s economy which has been stuttering all year. China also joined in on the push by reducing the level of cash that banks are required to have on hand with the goal of boosting lending.
On Thursday the Aussie dollar was one of the biggest losers in the dollar’s 16 most traded counterparts as concerns grew that the Reserve Bank will cut rates due to a slowdown in the Australian economy.
Here’s how some of the major currencies performed against the U.S. dollar on Thursday:
EUR-USD +0.1123% 1.3461
GBP-USD -0.0771% 1.5692
USD-JPY +0. 1359% 77.7255
AUD-USD -0.5424% 1.0227
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