On January 29, 2009 in Tokyo trading, the U.S. Dollar dipped slightly against the Japanese Yen, after rising yesterday due to a surge in U.S. shares as the Federal Reserve did not commit itself to purchase longer term Treasuries. Yesterday, the Federal Reserve maintained interest rates near zero after a two-day meeting, although it was announced that they were prepared to acquire longer dated Treasury debt, if it was perceived that that would improve the liquidity crisis.
The U.S. Dollar slipped by 0.4% against the Japanese Yen and traded at 89.86 Yen, retreating somewhat from yesterday’s high of the week, 90.79 Yen, this following the Federal Reserve Bank's decision. The U.S. Dollar, however, was higher versus other major currencies; the Euro fell by 0.4% against the U.S. Dollar and traded at $1.3112 while the Pound Sterling fell by 0.8% against the U.S. Dollar and traded at $1.4133.
The New Zealand dollar dropped to a low of $0.5146 against the U.S. Dollar, the lowest since end of 2002, after the central bank interest rate reduction to 3.5%, a drop of 150 basis points, in order to boost their economy, which is deep in recession.