Dollar Up on Deeper Financial Turmoil

The U.S. dollar rose against the the Japanese yen and the Australian dollar today as the investors sought the safety for their funds after the yesterday’s optimism vanished on the bad report for the Australian fourth quarter GDP change.
The dollar went up against the yen for the second day today and also gained for the fourth day against the euro. It looks like the Japanese yen has lost its status of the «safe haven» currency after the country’s GDP fell by 12.5 percent in the fourth quarter of 2008. Now only the dollar attracts the currency traders and investors during the harsh times in the markets.
After the Australian GDP change for the Q4 2008 was reported at -0.5 percent instead of the expected 0.2 percent, the U.S. dollar currency index rose its highest level since April 2006, while the Australian dollar fell to the one-month low against its American counterpart. The drop in the Australia’s GDP scared the investors, signaling that it’s yet too early for buying the risky assets and currencies.
EUR/USD fell from 1.2541 to 1.2519 as of 8:51 GMT today after falling as low as 1.2467 earlier. USD/JPY rose from 98.20 to 99.20, peaking at 99.36. AUD/USD has already recovered from losses but was down to 0.6295 today.

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