Thursday, 7 Oct 2010

Dollar Continues to Drop on Monetary Easing Expansion Concerns

The U.S dollar dropped to a 15-year low against the Yen and the weakest level in eight months against the EUR as expectations mount the Federal Reserve will expand it quantitative easing program to boost the flailing U.S recovery. The dollar depreciated to 82.32 yen and fell to $1.3984 per euro after reaching $1.3996, the weakest since Feb. 3. The yen is at 115.10 per euro from 115.53.

The Yen continues its advance versus the USD as Japan announced it will not intervene in the markets ahead of this week's meeting of G7 leaders and Central Bankers. The Aussie climbed to record highs today versus the USD as better than expected employment data fueled expectations the nation will raise interest rates by the end of the year. Australia's currency climbed 1.3% to 99.00 U.S. cents from 97.75 cents yesterday. It touched a high of 99.16 U.S. cents earlier today, a record high.

The Pound climbed versus the U.S dollar and rebounded against the EUR after a U.K. report showed August manufacturing output rose 0.3% from July, a better than expected result. The pound appreciated to $1.6005 versus the USD.