The Dollar rallied to a one-year peak against a basket of currencies on Monday, as the government’s takeover of the country’s two biggest mortgage finance agencies boosted confidence in the US financial
sector.
While the news did much to reduce concern about systemic financial market risks, it did little to change fundamentals that had started to drive the Dollar higher prior to the weekend — slowing growth in the euro zone and the UK.
Some analysts though have expressed reservations about the latest US government move and were not ruling out a correction in the Dollar’s bullish trend of th (more…)
US lawmakers geared up for a possible vote on Monday on creating the $700bio government fund. Congressional leaders from both parties said they had a tentative agreement early on Sunday, but questions abound as to whether the US financial rescue plan, which would use taxpayer funds to buy up toxic mortgage debt, would restore confidence to shaky markets and head of a deeper downturn.
The Euro fell against the Dollar as Belgian-Dutch financial group Fortis was rescued in a state buyout after European Central Bank President Jean-Claude Trichet held emergency talks with Dutch, Belgian and Luxem (more…)
The dollar rose in late European trading yesterday as Fed Chairman Bernanke and U.S Treasury secretary Paulson testified in front of a senate panel. They came under harsh criticism as the Fed?s decision to buy $700Bn worth of ?toxic? assets from ailing U.S and foreign banks was explained, defended and scrutinized.
The specifics of the testimony were already on the newswires but one important revelation to come out of yesterday?s session was that Mr. Bernanke demanded the FED buy these illiquid assets at ?hold to maturity? values. This was a stark contrast to?fire-sale? prices that most would (more…)
The Dollar edged up for a second day on Wednesday, helped by the view that the credit crisis was not just a problem for the US economy and currency, but would spill over to the rest of the world.
Testifying to the US Congress on Wednesday Federal Reserve Chairman Ben Bernanke urged immediate approval of the US Treasury’s rescue proposal to thwart “serious consequences” for the US economy and financial markets.
Investors? confidence in the Dollar returned, after news US billionaire Warren Buffett will invest $5bio in Goldman Sachs, and after the Federal Reserve extended currency swap lines (more…)
