Dollar at New Lows against Euro, Yen
The U.S. dollar went down to the new record low levels against the European and Japanese currencies today during the Asian trading session on Forex as the Federal Reserve cut the discount interest rate in emergency.
The global financial crisis continued to press on the dollar even on weekend, when the destiny of the Bear Stearns was decided and the Federal Reserve cut the interbank discount interest rate from 3% to 2% to help the banking institutions to overcome the ongoing financial troubles.
Those factors added even more confidence to the investors, who expect the major interest rate cut on March 18 that it won’t be less than 75 basis points this time. If the interest rate will be changed from 3.00% to 2.25% it will gradually shift the currency’s position on the global Forex market.
During the Asian session the USD/JPY rate touched a more than a decade old level at 95.77, which wasn’t seen since August 1995. It corrected rapidly from that level and was trading at 96.43 as of 11:09 GMT.
EUR/USD set a new absolute high record at 1.5902 and also corrected fast from that important level. It was trading at 1.5775 as of 11:09 GMT.
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