Forex News

The Japanese yen rose to the new monthly and yearly maximum against the other major currencies traded on Forex today as the situation with the financial crisis worsened significantly through the weekend and Monday and the traders expect no improvement in the near future.

The British pound rose today against the U.S. dollar as the traders started to bet on the interest rate cut in the United States based on the recent catastrophic developments in the country’s financial sector.

The Australian currency may experience considerable gains against the New Zealand dollar soon as the New Zealand’s central bank showed commitment to the extreme rate cutting in the fear of recession, while Australian central bank may refrain from changing the rate for now.

The U.S. dollar continued to grow today for the fourth day against the euro on speculation that the problems are more serious for the European economy than for the United States, thus the rate differential may switch to the dollar’s favor.

The Chinese yuan traded almost unchanged in price against the U.S. dollar today after posting a significant gain yesterday on speculations that the central bank will reduce the currency’s appreciation rate as the inflation returns to its normal values.

The Japanese yen continued to grow against the major currencies today as the early stock market trading shows no sign of the optimism that was expected from the Freddie Mac and Fannie Mae bailout.

The Great Britain pound returned to its declining trend today even after the big positive opening gap this week. Analysts believe that this year may become the pound’s worst since 1992.

The Japanese yen showed a record fast growth against the major currencies this week as the stock markets declined worldwide and investors favored the low-risk assets in Japan, spurring the currency conversion process.

The U.S. dollar rose today to its new maximum level in almost seven months against the euro as the crude oil prices declined after it became obvious that the hurricane Gustav won’t be causing significant damage to the American oil industry.