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.
Although investors remain cautious because of the ongoing global recession, they reacted positively to the U.S. government rescue plan of the world largest financial institution, Citigroup, from collapsing. According to RBS Global Banking director of foreign exchange strategy,Dustin Reid, the foreign exchange markets continue to be about risk appetite and equities.
On November 24, 2008 in morning in New York trading, the Euro rose by 1.4% on the day against the U.S. Dollar at $1.2758, while it also rose by 1.2% against the Japanese Yen to 122.12 Yen.
The U.S. Dollar slipped 0.2% against the Japanese Yen to 95.70 yen, while the Pound Sterling rose by 0.7% to $1.5005. The U.S Dollar lost 0.8% against a basket of major currencies to 86.717.