Forex News

The measures proposed by the U.S. government to support the national financial system and the optimism that followed the announcement of Obama’s economic team caused the U.S. dollar to decline against the euro this week as the money risks decreased world-wide.

The Thai baht continued its decline against the U.S. dollar today and touched its lowest level in the last 21 months as the political protests and the civil unrest raged through the country.

The British pound fell today against the U.S. dollar and the yen, following the three days of growth, as the traders expect the GDP report to confirm a decline of the economy today.

The Japanese yen rose today against the major currencies after losing for two days as the U.S. macroeconomic reports will show the worsening of the crisis, according to the analysts’ expectations, and the investors will cut the amount of assets funded in the Japanese currency.

The South Korean won continued its decline against the U.S. dollar today despite the other Asian stocks rebound caused by the U.S. government’s intentions to bail-out Citigroup.

The Canadian dollar declined against the U.S. dollar for the second week in a row as the oil and commodities prices continued to drop on the worsening global economy outlook.

The Malaysian ringgit declined slightly today and also posted its third weekly drop against the dollar this week as the emerging stock markets and currencies lived through one of the worst week with the oil, commodities and exports prices falling on the global recession outlook.

The Indian rupee fell to the record low level against the U.S. dollar today as the Asian stock markets followed the path of the U.S. equities and declined strongly; the recession forecasts for 2008 and the first half of 2009 also played their role.

The Korean won reached the lowest level against the U.S. dollar since 1998 today as the country’s stock market fell for the eight day in a row and the foreign investors continued to pull-out the funds.

The Japanese yen rose slightly today after losing for the two days on the currency trading market as the U.S. bail-out plans failed to raise the confidence in the high-yielding assets, favoring the yen as the safe-haven currency.