U.S. dollar strengthening against euro, pound, weakening against yen, franc
Recession fears and expectations of sharp interest rate cuts by central banks in Europe sent the dollar soaring against the euro and the British pound Friday, Oct. 24, but the U.S. currency tumbled against the Japanese yen and the Swiss franc.
Investors around the world have suffered large losses based in U.S. dollars and now, the demand for U.S. dollar is rising, investors buying the American currency to cover off their debts. The result is a startling shift in the direction of the U.S. dollar and a sudden, alarming plunge in all other main currencies except the Japanese yen and the Swiss franc.
The exchange rate between euro and dollar was a two-year low under 1.25 dollars for one euro on Friday, as evidence mounted of slowing economic growth in Europe amid the global financial crisis. In morning trade, the Euro dived as low as 1.2497 dollars, last seen in October 2006. It later stood at 1.2683, down from 1.2926 late in New York on Thursday, Oct. 23.
The pound sank to 1.5269 dollars, which was the lowest point since August 2002, after official data showed the country's economy contracted by 0.5 percent in the third quarter.
The US currency sank to 92.80 yen, the lowest level since August 1995. It later pulled back slightly and stood at 93.80 yen in European trade, from 97.79 yen late in New York on Thursday.
The strengthening of the U.S. dollar would hurt American exports.
- German proposal: Suspend Greek sovereignty as price of financial aid
- Moldova gets 13 million euro from EU for the Transnistrian region
- Steps to resolve the Eurocrisis
- Default in the Eurozone - the impact for the Transatlantic economy
- US Dollar dominance end by 2025
- Eurozone economy grows 0.8% in the first quarter
- Crouching tiger, sitting bull: Taking advantage of Ireland’s vote of confidence
- Margin at Moldova currency market went down to minimum
- Where are markets heading to? Two scenarios for 2011
- The euro is here to stay
- Asia, US helps Mercedes Benz sales hit record high in 2006
- Cricova: The Largest Underground Wine Cellar in the World
- What does Remortgage mean?
- Dutch bear profit rises 26 percent
- Foreign direct investment in India doubles during 2006
- Greece: Socialist government's budget deficit of 12.5% caused debt crisis
- Toyota in talks to build new China plant
- Walt Disney profit up 39 percent
- DaimlerChrysler is not planning to manufacture trucks in India