The U.S. dollar dropped to the weakest level during the last 6 weeks against the European currency as the worlds stock markets rallied despite the delay in the U.S. automakers bail-out.
As it has become known yesterday, the $14 billion bail-out plan to rescue the General Motors Corp., and Chrysler LLC is likely to not get voted for by the Republican party in the U. S. Senate. The dollar declined today not only against the euro, but also against the Britains pound and the Japanese yen and the worlds stock markets went up moderately.
Some market participants remain too concentrated on the automakers bail-out plan, which isnt a big deal according to some analysts. The overall state of the global economy and the liquidity should be taken into account when analyzing the currencies. And the risks are becoming less of a concern today as the stock markets turn to the Christmas and New Year rallies.
EUR/USD rose from 1.3020 to 1.3100 as of 8:45 GMT today with the daily high at 1.3157 — the maximum level since October 30 this year. USD/JPY fell from 92.78 to 92.23, while GBP/USD went up from 1.4797 to 1.4923 today.
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