The U.S. Dollar ceded gains today as stock futures in the U.S. gravitated towards positive territory, but continual wariness over the worldwide economic outlook supported the U.S. Dollar and the low-yielding Japanese Yen.
Investors are concerned about recession in Germany, as the gross domestic product contracted in the third quarter of this year by 0.5%, pushing Europe's largest economy into recession, the first time in almost 5 years.
According to the OECD, economic growth for the United States, Euro zone and Japan will continue to slow down and its 30 member nations appear to be heading into recession. The OECD’s projections were announced ahead of the upcoming emergency meeting of the G-20 in Washington this weekend.
The Euro rose by 0.8% versus the U.S. Dollar to $1.2583. The Pound Sterling fell by 0.5% against the U.S. Dollar to $1.4846. The Euro rose by 2% against the Japanese Yen to 120.76, while the U.S. Dollar rose by 1% against the Japanese Yen to close at 96.00 Yen.
Concerns about risk also beat up on the Australian dollar, which dropped to a 14-day low of $0.6348 during in late trading in New York the previous day, prompting the central bank to intervene.