US Dollar Plunges to Another Record Low
After tumbling to its all-time low against the euro last week, the US dollar slumped to another record low as it hit its lowest in three years today, this time against the Japanese yen.
The greenback was bid as low as 102.92 yen in Tokyo trade and then settled at 103.74 from 105.37 yesterday and 107.17 last week. This was the lowest since January 2005.
The latest record plunge happened after the Federal Reserve announced that the currency's recent continuous decline may actually be helping the ailing US economy. However, Citigroup Global Head of Currency Strategy Tom Fitzpatrick is not convinced. “The market is disappointed by US Federal Reserve Chairman Ben Bernanke's comments,” he said. “They do not care about the weak dollar.”
Fitzpatrick also claimed that the record drop was the result of heightened fears that US economy may be slipping into recession as well as yields and expectations of interest cuts by the Fed.
Currency dealers added that an AIG (American International Group) weak earnings report sparked jitters about the credit market problems fallout.
Commerzbank Tokyo's Ryohei Muramatsu said that the worries over the credit crisis is getting even stronger. He added that since the weak dollar doesn't seem to bother the Fed, it may take quite a while for dollar to reach the 100 yen level again. If you enjoyed reading this article, you'll surely be delighted in learning how to calculate exchange rates.
on 2008-10-12 at 21:06:06
Ariel, I think you're kind of paranoid. The media tends to blow this out of proportion. Believe me, the market has always corrected itself throughout history. Many people will lose their jobs, and some businesses will close down, but we're not headed for another "Great Depression." It will end somewhere, and then everything will start climbing back up.on 2008-10-08 at 00:17:13
Hey Arnold, I disagree. I've read articles that said this kind of economic meltdowns are unprecedented because they're of a different nature than before. We're basically in unchartered territory right now. This thing could get really ugly if it spills over more industries.on 2008-09-26 at 02:33:00
I don't think there's going to be another depression. In spite of the dollar's downtrend, the economy is still standing. We'll just have to hope and pray I guess.on 2008-09-18 at 00:29:23
I've been noticing the decline of US dollars recently, and although it has shown an upsurge since this article came out, I am still quite apprehensive. Hope this doesn't end on another Depression.