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Stocks in Europe Drop as Citigroup Optimism Fades

By DailyForex.com

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 November 25, 2008 at 09:42 GMT, the U.S. Dollar fell by 1.2% against the Japanese Yen to 95.50 Yen, while the Euro fell by 1.5% against the Japanese Yen to 123.40 Yen.  The Euro fell by 0.4% against the U. S. Dollar to $1.2860.

The Euro came under extreme selling pressure as shares in Europe fell by 1%, reversing the 8.9% gain on Monday, which helped boost the Euro to its highest level versus the U.S. Dollar and the Japanese Yen in more than 14 days.  The Pound Sterling fell by 0.2% against the U.S. Dollar.

Investors are anxiously awaiting the preliminary data on the economic growth in the U.S. during the third quarter, which will be announced at 13:30 GMT

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