Market News

In anticipation of today’s U.S. election results, global stocks moved higher, helped by the Australian central bank’s larger than expected interest rate reduction, which may pave the way for European central banks to follow with similar aggressive interest rate cutting action. The Australian central bank slashed the benchmark interest rate by 75 basis points, to 5.25%, which was the lowest in more than 3 years.

The Euro and several high-yielding currencies, including the Pound Sterling, gained against the U.S. Dollar today, while the Japanese Yen retreated across the board as rising equities from Asia and Europe helped to diminish extreme risk aversion.

The U.S. Dollar rose versus most major currencies today as worldwide share prices dropped lower due to concerns about a possible recession in major countries.

Today, in early trading, the U.S. Dollar fell versus the Euro, Pound Sterling, and several high-yielding currencies. This follows a reduction of a key interest rate by the Federal Reserve Bank, which helped to calm extreme risk aversion and boosted European shares. It was widely expected that America’s central bank would reduce the key interest rate from 1.50% to 1%. There is a possibility of further rate cuts, if the need arises.

The Japanese Yen retreated from a 13-year highs versus the U.S. Dollar today as global stock markets bounced back and risk aversion ebbed, raising the possibility that official intervention is likely should the need arise.

The Japanese Yen's rally remained intact, today despite the G7 concerns about disproportionate volatility in the Japanese Yen, while the U.S. Dollar hit a 2-year high against the Euro as investors moved out of risky assets.

The Japanese Yen surged against the U.S. Dollar and Euro today, as plummeting global stock markets increased risk aversion, confirming investors’ fears of the possibility of a protracted global recession.

The threat of a worldwide recession continues to worry investors who are cutting their exposure, as evidenced by the U.S. Dollar’s slight gain on Thursday. The U.S. currency stayed within striking distance of a 24-month high against the Euro as well as a basket of major currencies

The U. S Dollar surged today, hitting a 2-year high versus the Euro and a group of currencies, while the Japanese Yen continues to gain as investors moved out of riskier assets.

Earlier today, the U.S. Dollar saw its highest gains against the Euro in more than 18 months, and traded near the 16 month high versus a basket of major currencies. These highs were fuelled by continuing global demand for the U.S. currency. The U.S. Dollar index steadied at 83.139 .DXY, coming very close to yesterday’s high of 83.230, the highest the .DXY has been over the past 16 months

The Euro and the Pound Sterling gained ground against the U.S. Dollar on Monday, in light of continuing efforts to save the global financial and banking system. The effect of the rescue effort encouraged sale of the U.S. currency.

The Japanese Yen rose against the U. S. Dollar and the Euro today as more data shows that the U.S. economy is slowing down considerably. This heightened investors’ fears that the current liquidity crisis had almost pushed the entire global economy into recession.

The U.S. Dollar dropped against the Japanese Yen today as data for September retail sales showed a sharp decline and investors are beginning to wonder if the government's $250 billion liquidity injection into the troubled banks will be able to keep the U.S. economy out of recession.

Today the Euro gained broadly, leaving the Japanese Yen in the dark, as investors support European government rescue plans to resolve the liquidity problems in the banking systems, with the hope of stemming the worst financial disaster since the 1930s.

The Euro surged against the U.S. Dollar following the unified plan proposed by major European countries in order to rescue their banks from collapse. The currency was at an 18 month low against the U. S. Dollar.