Global financial distress and economic weakness beyond the United States persisted, giving the greenback a safe-haven bid.
Weakness in the US stock market has once again supported the Yen versus the Dollar, Euro and other high-yielding currencies as investors unwound trades funded using the Japanese unit's low rates. Investors also fretted about data showing declines in US consumer sentiment and housing construction, which fueled fear that the credit crisis had knocked the economy into recession.
On Friday, data showing US consumer confidence suffered its steepest monthly decline on record in October while new home construction last month hit a 17-1/2-year low followed reports detailing drops in retail sales and industrial output. Signs of trouble also emerged in economies in Eastern Europe and Asia, while investors expect slower euro zone growth to force the European Central Bank to cut interest rates again by year end.
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Weakness in the US stock market has once again supported the Yen versus the Dollar, Euro and other high-yielding currencies as investors unwound trades funded using the Japanese unit's low rates. Investors also fretted about data showing declines in US consumer sentiment and housing construction, which fueled fear that the credit crisis had knocked the economy into recession.
On Friday, data showing US consumer confidence suffered its steepest monthly decline on record in October while new home construction last month hit a 17-1/2-year low followed reports detailing drops in retail sales and industrial output. Signs of trouble also emerged in economies in Eastern Europe and Asia, while investors expect slower euro zone growth to force the European Central Bank to cut interest rates again by year end.
Discuss
Add this link to...
Tell a friend
Bury
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