Monday 31st March

The US dollar finished last week under pressure once again but managed to move away from its intra-week lows. Friday economic news saw US consumer confidence falling further into recessionary territory in March and hitting a 16 year low as it did so. Earlier in the week the presidents of both the Dallas and Chicago Federal Reserve banks warned that the Fed needed to be wary of a rise in inflation even as it attempts to navigate the country through an economic slowdown. Overnight the us dollar is slightly higher against the Yen boosted by unexpectedly strong demand from Japanese importers and institutional investors on the last day of Japan's fiscal year. Meanwhile the Aussie is softer on risk aversion fears as Far east stocks markets tracked Wall Street lower on signs of slowing consumption in the US and worries about more losses at financial firms.