Wednesday, 22 Sep 2010

Dollar Hits Its Lowest Since April

The U.S currency fell to its lowest level against the euro since April and extended losses against ‎other major currencies on Wednesday, a day after the Federal Reserve said it was ready to ‎take further action to boost the U.S. economy. Analysts said that the catalyst for such ‎pressure is the threat of additional quantitative easing undertaken by the U.S. central bank.‎ The euro rose 1 percent versus the dollar after climbing 1.5 percent on Tuesday, helped by ‎buying by Middle East central banks, traders said. It firmed past its 200-day moving average on ‎Tuesday, pointing to more gains on the charts. The dollar also fell against the Swiss franc ‎dropping to 0.9899 francs, its lowest since April 2008.‎ Against the Japanese yen, the dollar fell to 84.43 yen, down from 85.07 Tuesday. The dollar has ‎hovered near 85 in the week since Japanese monetary authorities intervened in the currencies ‎market, after the dollar hit a 15-year low of 82.85 yen.‎ But the market was wary about selling the dollar against the yen too aggressively, anxious it ‎might trigger another wave of intervention by the Japanese authorities that wrong-footed ‎many investors, including hedge funds, last week.‎