The Indian rupee fell below 50 per a dollar today on the signs of an economic slowdown in India, spurring the speculation that the nation’s central bank may intervene to support the currency.

The ever-shifting mood among Forex market participants, caused by the uncertain prospects for a resolution of the European struggle with debt, translates into violent swings and an unpredictable behavior of currencies. The behavior of the New Zealand dollar wasn’t very different, yet the currency managed to gain as there was a reason for optimism.

Europe and its problems continue to rule the Forex market. Yet again traders looked with hope at the upcoming European Union summit as the speculation persists about the expansion of the EU rescue fund.

Japanese yen is heading lower today as traders focus on good earnings in the US. It appears as though a eurozone solution is, yet again, being put off. However, traders are still look for yields, and the yen is lower as a result.

The South Korean won weakened today as Forex traders shun the currencies of emerging markets because of worries about the effect of the crisis in Europe on the global economy.

The Swiss franc gained today as many traders remained unconvinced about ability of the European leaders to find a cure for the region’s failing economy, driving Forex market participants to the perceived safety of the Swiss currency.

An apparent split between France and Germany on the subject of the EFSF has been causing problems in getting a deal done to contain the sovereign debt crisis. However, eurozone leaders are now saying that the two countries are in full agreement. The euro is a bit choppy today, on all the conflicting reports.

The Canadian dollar dropped today as the speculation that the rescue fund of the European Union won’t be boosted, making traders unwilling to buy currencies with higher potential yield, but also with higher risk.

Today, the name of the game is risk appetite on the Forex market. Traders are looking for higher yields in their relief over a possible eurozone debt crisis deal, and the Australian dollar is heading higher as a result.

Once again, optimism is growing amongst Forex traders that a deal will be reached to contain sovereign debt in Europe. Even as Spain is downgraded, risk appetite is improving on the outlook for a plan to stop the spread of sovereign debt contagion.