The Dollar dropped sharply against the Yen Thursday as concerns intensified regarding the state of the global economic recovery with concerns of a possible slowing of Chinese growth as well as continued unease over Greek sovereign debt. The Dollar was also hit over proposed U.S. banking regulations by President Obama. The Dollar Index was at 78.395 from 78.369. It earlier hit 78.814, its highest level since Sept. 2.

The Dollar rose to its highest level against the EUR since July during Thursday's early trading; however, the greenback retreated from its high to currently trade at a similar level to Wednesday after the announcement of the bank regulations proposed by the Obama administration. The bank regulation plan would force institutions to choose between commercial banking and proprietary trading for their own profit, while seeking to limit the size of mega banks. The Dow Jones Industrial Average sank after the release of the proposed regulation, losing more than 2% by late afternoon, further sapping risk appetite from the markets.

With no news releases today from the U.S, the Dollar movements will likely be determined by releases from Europe as well as movements in the equity markets.