Euro, commodity currencies down in Asia

The euro and commodity currencies such as the Australian dollar came under pressure on Friday after a raft of weak US economic data and concerns about European banks sent skittish investors piling into US Treasuries and away from stocks. Mounting fears of global recession sent Asian bourses down after the Nasdaq plunged more than 5 percent and European stocks dropped sharply, dragged lower by banks, while safe-haven gold posted record highs above $1.840 per ounce.
The fall in the Aussie, however, was limited as it held above its 200-day moving average, with traders citing support from fund and exporter selling of the dollar against Asian currencies. "I'm really surprised by how quiet the market is today, compared to stocks. Investors are awaiting more developments in Europe and the US as we enjoy some lukewarm pre-weekend trading in Asia," said a trader for a major Japanese bank who did not want to be identified by name.
The euro fell 0.2 percent to $1.4310, after slipping 0.8 percent to $1.4303 as an unnamed eurozone bank borrowed $500 million in one-week from the European Central Bank. That sent interbank lending rates soaring with the USD Libor/OIS spread blowing out to 19 basis points, the highest level in 12 months. Three-month Libor also struck four-month highs at 2.9778 percent.
The dollar was also up 0.1 percent against the New Zealand dollar, which was at $0.8218 after at one point dropping nearly 2 percent to $0.8196. The Aussie was down 0.1 percent at $1.0359 after skidding to $1.0338 from this week's high above $1.0600. "Investors are parking funds in dollars as global economic concerns heighten after weak US data the previous day and as a lack of clarity about Europe's debt problems spreads to banks in the eurozone," said Tsutomu Soma, senior manager at Okasan Securities. The dollar last traded at 76.53 yen and stayed almost unchanged versus the Swiss franc at 0.7940, having risen to 0.7944 franc from 0.7822. Against a basket of major currencies, it was 0.1 percent higher at 74.33, compared to Thursday's open at 73.77.