The Dollar fell against the Japanese yen on Monday, as weak US manufacturing data deepened worries about the global economy that worldwide leaders ended a weekend meeting with few concrete proposals for dealing with this year's downturn. The Euro slipped versus the Dollar in a choppy session, but was off its lows for the day, as risk aversion remained elevated on news Japan's economy slid into recession in Q3. Further weighing on the market came after record low report of Empire Manufacturing and news that Citigroup intends to slash up to 50k jobs or 15% of its work force. That depressed Wall Street, with major indexes falling more than 2%. US data showing industrial production rose 1.3% in October, after a downwardly revised September drop of 3.7%, the biggest fall in more than 62 years, did little to ease worries about the world's largest economy. The bounce in production has been attributed to a post-hurricane rebound and analysts say this was not a sign that downward pressure on the US economy was easing. In fact, the Philadelphia Federal Reserve's latest Survey of Professional Forecasters said the US economy dipped into a recession last spring and will contract sharply this quarter. Lately the Dollar rises against a broad range of currencies and the Yen gains as well when risk appetite is low because investors seek refuge in US Treasuries and unwind trades financed with the cheaply borrowed Yen.

Yesterday, EurUsd was down 0.36% at 1.2644 rebounding from 1.2513 intraday low. EurJpy was 1.1% at 121.86. UsdJpy was 0.73% lower at 96.38. GbpUsd rose 1.25% at 1.4987 having posted 1.5083 intraday high. GbpJpy rose 0.51% at 144.45 with 146.50 intraday high. UsdChf rose to 1.2007 1-year high and ended 0.58% higher at 1.1988.

In Washington over the weekend, leaders of the Group of 20 countries drafted steps to rescue the world economy from its worst crisis in 80 years but left it to individual governments to tailor their responses to their own circumstances and troubled industries. Traders and analysts remained skeptical on the British currency given signs of worsening UK economic conditions. The Confederation of British Industry said Monday the UK economy in 2009 will suffer its sharpest contraction in almost two decades and unemployment could approach 3 million by 2010.