The dollar sank towards fresh lows against the euro and the yen today after a bleak US Jobs report added to concerns that the world's largest economy is in a recession. But the dollar rebounded slightly after the US Feds announced that it was pumping up to 200 billion dollars into the troubled financial system to try to ease tightening credit.
Despite the lack of UK fundamentals in the market, the British pound soared against the dollar on the back of a weak dollar pushing the pair to record a high of 2.0202 and a low of 2.0151. This incline in the British pound may also be due to the fact that higher expected inflation numbers today. PPI should be on the rise given the incline in food and energy prices.
The dollar continues to depreciate as the US lost jobs adding to the worries that thee economy is in a recession. This boosted the euro against the weak dollar as analysts speculate the Feds will cut interest rates aggressively. The pair is trading now towards the upside to record a high of 1.5400 and a low of 1.5360
The dollar also fell towards an eight-year low against the yen as traders are betting that the Feds will lower interest rates by 1% point to try to avoid a recession. This appears to be in favor of Japanese exports as a weaker dollar boosts the exports. The greenback continues to drop against the yen dragging the pair with it to record a low of 101.85 after recording a high of 102.44.
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