Market News

The U.S. Dollar bottomed out to a new 13 year low versus the Japanese Yen in London trading today, following the overnight failure of the U.S. Senate to ratify a bailout agreement for the major U.S. auto makers, which triggered risk aversion and a strong demand for the lower yielding Japanese Yen.

The Euro hit a 6-week high against the U.S. Dollar today as investors are pondering whether the projected restricted demand for the Greenback would materialize by the year-end. Analysts, such as Adam Cole of London-based RBC Capital Markets, believes that although there was originally a strong consensus that U.S. Dollar requirements would push the currency higher toward year’s end, that doesn’t appear to be materializing.

Both the U.S Dollar and the Japanese Yen fell today as some investors were comforted by a tentative bailout arrangement between the U.S. lawmakers and the big three auto makers. It appears that the House of Representative in the U.S. could vote soon on the $15 billion bailout plan and restructure the three auto makers. However, the bailout plan is likely to face some significant roadblocks from the U.S. Senate.

The Japanese Yen rose broadly today, even versus an otherwise upbeat U.S. Dollar, recovering from previous day’s losses as investors re-direct their attention to the global economic weakness.

The Euro fell versus the U.S. Dollar today following growing risk aversion, prior to the release of U.S. employment figures. According to most analysts, the U.S. data will show a sharp decline because of the intensity of the global economic downturn.

The Euro and the Pound Sterling fell against the U.S. Dollar today after aggressive interest rate cuts by the Bank of England and the European Central Bank. Investors still believe that there will be further interest rate cuts needed in order to stimulate the flagging economies.

The Japanese Yen rose today, boosted as a drop in European shares raised investors concerns about risky positions, while investors awaited interest rate decisions by major central banks within the Euro Zone.

The Japanese Yen rallied to a 5-week high against the U.S. Dollar today as faltering global stock markets reflected investors’ continued concerns about risk and the degree of the global economic problems.

The Japanese Yen gained ground today as central banks of major currencies, such as the Pound Sterling, Euro and the Australian Dollar, are expected to cut interest rates during this week and as the result, their currencies fell.

The U.S. Dollar gained against major currencies today, rising as concerns about the extent of the breadth of the global recession on investors’ sentiment. Increased concern about risk helped push shares in Europe into negative territory, however, while low-yielding Japanese Yen surged against major currencies.

The Japanese Yen gained against the U.S. Dollar and the Euro today as market concerns about the overall cost of the huge fiscal stimulus packages announced by most central banks, and whether or not they could succeed in preventing global recession, kept the Japanese Yen, a low-yielding currency, high.

Today, ahead of measures expected to be implemented by E.U. central bank ministers to stimulate the global economies, risk aversion helped prop up the Japanese Yen, which saw some gains against higher yielding currencies such as the Euro, even while European share prices continued to struggle.

The Japanese Yen was up versus the Euro and the U.S. Dollar today as global recession worries returned to preoccupy financial markets and as a result, stocks fell as investors stayed away from riskier assets. A drop in European share prices boosted the low-yielding Japanese Yen, after optimism on news about the bailout of Citigroup by the U.S. government quickly dissipated.

On Monday, the U.S. Dollar dropped against a basket of major currencies and the Euro as risk aversion reduced following the U.S. government’s announcement of a $20 billion injection to rescue troubled Citigroup, the world’s largest banking corporation. Stocks rose in Europe, and the same time U.S. stock futures appears to point to a positive opening on Wall Street in a sign of increased risk appetite, which is attributed to the weakness of the U.S. Dollar.

The U.S. Dollar and the Japanese Yen fell today as global stock markets rebounded and on the announcement that Citibank, the largest financial institution in the United States, was contemplating a merger with another financial institution to quell market anxiety.