Worries about the US economy have worn out the dollar and major stock markets in recent days, dozing concerns that the credit market problems is far away from easing. The weak US currency in turn boosted dollar priced commodities with investors regarding gold as a safe investment amid concerns over rising inflation and uncertain economic climate.
Meanwhile, the pound is declined with in the hour to record a low of 1.9810 after recording a high of 1.9936. However, currently the pound is sending mixed signals as data show that the UK economy is slowing and the Bank of England has a balancing act to perform in controlling short term inflation worries while considering the slowing economic growth.
The euro hit a new record against the dollar on Monday, striking 1.5257 dollars in mid afternoon trading. The latest surge in the euro came ahead of key US manufacturing data that was closely observed to see whether as feared the US economy is slipping into recession.
The dollar plunged to a low against the yen today in Asia on concerns about the state of the US economy and possibility. The dollar become to decent last week after US economic indicator one by one comes in weaker than expected. This pushed the USD/JPY pair to the downside to record a low of 102.62 after recording a high of 103.57
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