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The euro continued to depreciate in the forex market today, making it 5 days of back-to-back losses. The European currency has been, and still is, under a lot of pressure as the region has to solve their debt crisis. The biggest problem is currently the situation in Greece, which still shuns investors from the euro. Apart from the Greek problem, Portugal has also been showing signs of troubles. Current speculations are that Portugal might be forced to pay high yields in the upcoming bond auction since Standard & Poor’s cut their rating level and put several Portuguese banks on their watch list. Some economists are saying that the situation is Portugal is so bad that they might need a bailout. If that would be that case, the European region should have enough capital to rescue both Portugal and Greece.

The euro lost 0.2 percent against the Japanese yen and 10 basis points against the U.S. dollar during today’s trading session.

The Russian ruble continued to depreciate in the forex market today, just as it did during yesterday’s trading session. Oil prices have recently been dropping, which affects demand for the Russian ruble. As the country is resource rich and a large exporter of crude oil, falls in oil prices ultimately affects demand for the ruble and ruble-held assets. This is the main reason behind yesterday and today’s depreciation. Today, the price of a barrel of oil dropped by 70 points. This was mainly due to speculations that the world economy will continue to look weak the coming year and that European officials will have a hard time solving the debt crisis, even though they are set to meet in Brussels today.

The ruble fell 20 basis points against the U.S. dollar and 50 basis points, 0.5 percent, against the euro.

The Taiwanese dollar reached the highest level in three months as the Chinese are gearing up for their New Year celebrations. Investors are betting that the celebrations will be a big bank day for Taiwan as exports are expected to grow to match the peak in Chinese demand.

Apart from exports to China, Taiwan’s dollar, together with several other Asian currencies, have gained momentum the past couple of days on positive global signs. First off, the U.S. proved that their economy is heading for recovery as they keep presenting solid figures. This will have a positive effect on global growth, making Asian stock markets and currencies appreciate. Apart from the U.S., the IMF announced that they are willing to add more funds to the rescue plan of the European Union, which also indicates that the global economy might be heading for recovery.

All these news combined made Taiwan’s dollar appreciate 10 basis points against the U.S. dollar today. Taiwanese stocks, however, are not changed as the country’s stock market is closed for a week.

The euro appreciated in the forex market today, coming back from a couple of days of previous losses against mainly the U.S. dollar and Japanese yen. Today’s factor for appreciation was that both Spain and Greece are not having as much trouble finding capital as analysts had predicted. The cost of borrowed capital decreased for both these nations in earlier bond sales. Spain had to pay around half of what they did just a month ago, while Greece managed to pay around 50 basis points less.

Other reasons behind today’s gains for the euro were high business sentiment in Germany and added funds to the European crisis fund. The euro appreciated 80 basis points against both the U.S. dollar and Japanese yen. There were no major price movements between the U.S. currency and Japanese yen as increased risk appetite usually does not increase the demand for these currencies.

As European officials meet to further discuss possible actions to contain the European debt crisis, optimism sweeps through global financial markets. In the forex market, several Asian currencies appreciated against both the U.S. dollar and the euro.

The main winners in today’s market were the South Korean won and the Taiwanese dollar. The South Korean currency appreciated 60 basis points and the Taiwanese currency gained 30 basis points against the U.S. dollar. The won had previously depreciated 130 basis points, making todays gain a small comeback.

Apart from European leaders showing intention to take actions, the South Korean government further spurred demand for the country’s currency as they announced that foreign investments in the country have increased and will continue to do so in the future. Malaysia’s main appreciation factor is a new government report showing that manufacturing has increased more than analysts had expected.

India and China, two of the worlds largest economies, showed signs of strengthening by reporting growing manufacturing numbers in late 2011. As a result, several Asian currencies appreciated in the forex market.

The first financial markets to gain from the positive news were Asian stock markets, where several indices grew by over 100 basis points. Not long after, several Asian currencies gained. The largest Asian winner in the forex market was the Malaysian ringgit, appreciating 0.7 percent against the U.S. dollar. Other currencies performing well were the South Korean won, Philippine peso and Singapore dollar, which all gained just under half a percentage against the U.S. dollar.

As Asian economies and markets show a small sign of stability in a slow economy, investors demand for the region’s stocks and currencies increase in the search for high yields.

Germany has been a powerhouse in the European Union for a long time. The country is currently the third largest export economy in the world, only outperformed by the United States and China. It is not only considered Europe’s largest economy, but also one of the largest economies in the world.

As the current debt crisis has led to a rescue plan full of German demands, chances are that the same plan Germany has crafted will lead to an increased level of competition for the country. The stricter rules the European Union will implement might very well lead to conditions in other countries similar to those of the Germans. Labour costs and wages might decline, thus making the work force more flexible and competitive.

German officials said that they believe that this very well might be the case in the future, but that it is a necessary step for European countries to take. Lately, Germany has been the main reason for an appreciating euro that bounced back from record lows in the forex market.

The Russian ruble keeps falling in the forex market due to uncertain economic growth in the world. Pessimism is currently sweeping financial markets, leaving risky assets harmed.

Russia’s most important export is oil, which has been taking a hit lately in the commodity market. Crude oil is currently trading at low levels. It recently fell half a percentage, leaving Russian oil companies with lower profits. Just a few days earlier, oil depreciated over 1 percent.

The Russian ruble dropped 0.7 percent against the U.S. dollar today, making the total weekly loss over 1.5 percent. The ruble has weakened against other currencies as well, recently dropping 0.7 percent against the euro. Currently, investors are predicting that the Ruble will keep seeing declines against both the U.S. dollar and euro.

The euro hit its lowest point against the U.S. dollar this year as a result of weak measures taken by European policy makers. The markets have long been discontent with actions taken by European countries to tackle its debt crisis, which is clearly presented in the current fluctuations in the forex market.

The euro-zone currency fell not only against the greenback, but also several other currencies traded in the forex market. The latest dip was a result of reports coming out of Germany stating that their Chancellor Angela Merkel is unwilling to put more money in the new European crisis fund that is to be set up and used early 2012.

The euro dropped 0.8 percent against the Japanese yen and 0.7 percent against the U.S. dollar.

Uncertainties still shake the value of the euro and other currencies in the forex market, which has made investors buy more commodities at the moment. Markets are still nervous and unsure about the current debt crisis and are looking for other investments than mainly stocks and currencies.

Trading volumes of both metal and gold have increased significantly in the last weeks. Investors are expecting commodity prices to rise and hope to gain high yields from the price movements. Economists believe that investors are afraid of possible outcomes from euro-zone meeting, which has shifted focus to commodities.

More commodities, like corn, are expected to see gains. Several Central Banks are currently stocking up on gold reserves, which has not happened for decades.