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Dollar Declines to 13-Year Low Against Yen After Fed Rate Cut
Stanley White
Bloomberg
Wednesday, Dec 17, 2008
The dollar fell to a 13-year low against the yen and the weakest
versus the euro in 11 weeks after the Federal Reserve cut its
target interest rate to the lowest among the world’s industrialized
nations.
The U.S. currency also declined after the central bank said it
will expand purchases of debt securities to fight the recession.
The yen remained higher after Japan’s finance minister said
he is ready to take steps in the currency market. The British
pound was near the weakest on record against the euro before the
Bank of England releases minutes from its Dec. 4 meeting, when
policy makers cut borrowing costs to the lowest level since 1951.
The dollar fell to 88.24 yen, the lowest since August 1995, before
trading at 88.67 yen as of 7:48 a.m. in London from 89.05 yen
late yesterday in New York. Against the euro, the dollar declined
to $1.4051 from $1.4002 yesterday, after touching $1.4192, the
weakest level since Sept. 30. The euro was at 124.57 yen from
124.71 yen.
(ARTICLE CONTINUES BELOW)
“Last week we sold the dollar against the euro and the
Australian dollar, and we may add to these positions,” said
Akira Takei, general manager for international bonds who helps
oversee the equivalent of $2.46 billion at Mizuho Asset Management
in Tokyo. “The Fed’s alternatives are diminishing.
Among investors, there will be less confidence in the dollar.”
The dollar may fall to $1.45 per euro by March 31, he said.
The Australian dollar rose to a two-month high of 70.25 U.S.
cents before trading at 69.65 cents from 69.43 cents yesterday.
The pound traded at 90.03 pence per euro from 89.94 pence yesterday,
when it reached an all-time low of 90.50 pence. Sterling rose
to $1.5610 from $1.5581.
Full
article here
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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