On April 1, 2009 at 3:25 p.m. (JST) in Tokyo, the U.S. Dollar and the Japanese Yen rose on a report that U.S. authorities were prepared to let automakers in the U.S. go bankrupt, however the currency retreated after a U.S. official said that the information about the bankruptcy was inaccurate.
Bloomberg News reported that Barack Obama has decided that a pre-packaged bankruptcy will be the best remedy for General Motors Corp. But the Japanese Yen and U.S Dollar retreated after one senior government official said that the report is inaccurate, as President Barack Obama's thinking regarding the crisis at GM remained unchanged since Monday.
According to one forex trader from a Japanese bank, the report that Chrysler may file for bankruptcy is now affecting the whole market. The U.S. Dollar index, a measure of the U.S. Dollar’s performance against 6 major currencies, increased by 0.4% to 85.850 .DXY. The Euro was down by 0.4% against the U.S. Dollar and traded at $1.3193; against the Japanese Yen, the Euro fell by 0.7% and traded at 130.29 Yen. The U.S. Dollar fell by 0.1% against the Japanese Yen and traded at 98.85 Yen.