After the European session witnessed a sharp decline in the stock markets as well as in commodities during yesterday's trading, today the Asian session turned out to be even more agitated, as it fell sharply where Nikkei 225 inclined 3.22% following the German DAX index which fell 3.25%, while the British FTSE index fell by 3.18%.
The sharp decline that hit the stock markets have also been undertaken by the commodity markets, and even extended towards the futures markets, as investors started looking for safe haven amid the volatility and the sharp decline as well as the high levels of risk which affects the financial markets.
Investors bought the US dollar and the Japanese yen as a safe haven, while others embarked on profit taking operations, exiting the stocks markets pushing the US dollar to rise violently against the euro which fell today from 1.5018 level to the lowest level of 1.4900. The euro yesterday dropped from its highest levels this year of 1.51.
The sterling fell continuously since yesterday, and today it's falling from the level 1.6574 to the lowest at 1.6374. The sharp fall seen by the pound yesterday was due to concerns about problems emerged from Dubai which might not be able to pay its debts. The United Kingdom is one of the largest investors in Dubai especially the real estate market, and those fears extended to the entire global market pushing the stock markets sharply to the downside and the dollar strongly to the upside.
The Japanese yen started today's trading session in a manner not seen in years, as it rose sharp rise reaching 84.79 after falling from the highest today of 86.59. This rise in the Japanese currency drives it to the highest level since July 1995.