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 225slumped 3.22% following the German DAX index which fell 3.25%, while the British FTSE index fell by 3.18%.
The selloff that was seen across 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 affect financial markets.
Investors bought the US dollar and the Japanese yen as a safe haven, while others embarked on profit taking, exiting 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.
Sterlingcontinued the declinesince yesterday, and today it's falling from opening levelsaround 1.6574 to the lowest at 1.6374. The sharp fall seen by the pound yesterday was due to concerns about Dubai defaulting on their liabilities. The United Kingdom is one of the largest investors in Dubai especiallyin the real estate market, and those fears extended to the entire global market pushing equities 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 lowest set versus the dollatoday of 86.59. This rise in the Japanese currency drove it to the highest levels since July 1995.