The Japanese Yen is taking the spotlights from the Australian and the New Zealand Dollar, consequential to the European market sinking in debt crisis.

The experts attribute the 0.3% fall of the Australian Dollar, yesterday, to the drastic decrease in June’s bank lending, which was the slowest in seven consecutive months.

For the New Zealand Dollar, reports showed that the 0.4% fall is attributed partially to the decline in the home-building approvals, as well as to Alan Bollard’s statements.  

However, Joshua Williamson, Senior Economist at Citigroup Incorporation in Sydney expressed his optimism toward the New Zealand currency’s ability to restore its value in the markets. He also stressed that the Reserve Bank of New Zealand, New Zealand’s Central Bank, is able to compensate the losses in no time, depending on the steady flow of trade, inside and outside the country.

Williamson added, “With neutral interest rates and the economy moving to trend growth, we think the Reserve Bank is going to be very comfortable with the setting of policy for the remainder of the year”.

Despite Williamson’s trust in the Reserve Bank of New Zealand, Alan Bollard, the Central Bank Governor, described any potential rise to be “moderate”.