As reported in Tokyo at 4:47 p.m. JST on March 10, 2009, the U.S. Dollar dropped against a group of currencies, retracing much of yesterday’s sharp rise as funds moving into the U.S. Dollar slowed and investors trimmed bets that the Dollar will rise further. The Japanese Yen erased earlier losses and gained against the U.S Dollar, though concerns about its rank as a safe haven currency in the global economic environment ensured it kept a defensive tone, according to traders.
The Euro benefited from the fall of the U.S. Dollar and gained against the Pound Sterling, as analysts agree that mounting costs of the United Kingdom’s efforts to prop up its financial sector and the economy meant that the Pound Sterling was drawing speculative selling.
The U.S. Dollar Index, a measure of the greenback’s performance versus six major currencies, dropped by 0.8% to 88.533 .DXY. The Euro gained 0.8% against the U.S. Dollar and traded at $1.2710, rebounding last week from $1.2457, the lowest price in the last quarter. The Euro rose by 0.6% against the Pound Sterling and traded at 91.98 Pence. Versus the U.S. Dollar, the Pound Sterling managed to bounce back from a 6-week low, gaining 0.3% and trading at $1.3824.