Yesterday the Federal Reserve lowered the benchmark interest rate from 3.00% to 2.25% to help the banking institutions during the times of global financial turmoil, but will the investors’ expectations for the further cuts be satisfied?
According to Australia’s largest mortgage provider, Commonwealth Bank of Australia, the U.S. dollar will perform worse than experts previously expected for this year.
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.
European leaders decided to include the strong euro reference to their two-day Brussels meeting conclusion, which is to be released today.
The Chinese yuan rose to its new highest rate against the U.S. dollar since the end of a currency’s peg to the dollar in 2005.
The U.S. dollar reached a new historical minimum against the euro today; it also fell below the 12-year old minimum level against the Japanese yen on the expectations of the more interest rate cuts from the Fed.
The South African rand gained against the U.S. dollar for the fourth day today as the stock markets throughout the world were stimulated by the Federal Reserve’s decision to pump about $200 billion into the global banking system.
Today the majority of the Asian currencies, including the South Korean won, fell down on the Forex market as the investors expected that the global financial turmoil will decrease the capital inflow into the emerging Asian economies.
The Canadian dollar dropped on Forex today, mainly against the U.S. dollar and the Japanese yen, as the investors favored less commodity-dependent currencies.
The New Zealand and Australian currencies continued their bearish trends against the Japanese yen today and dropped on Forex market during the Asian trading session, as the Japanese stock market plunged.