» Forex - Dollar dropped to record low against majors in thin market

The Dollar took another beating early this morning, dropping to record lows against the Euro, the Swiss franc and a basket of currencies because of a growing view that the US Federal Reserve will cut interest rates again next month.
Forex traders said low liquidity in the holiday-thinned market exaggerated currency moves and prices could remain volatile for the rest of the day. US markets were closed on Thursday for Thanksgiving and Japan’s markets are closed on Friday for a national holiday.
Economic Co-operation and Development (OECD), which warned in a report on Wednesday that overall losses caused by the US mortgage market crisis could feasibly hit $300 billion.
European Central Bank President Jean-Claude Trichet said on Thursday he was against abrupt and “brutal” swings in exchange rates, but investors still pushed the euro well above 1.4900 to put a test of the psychologically important 1.5000 level in sight.

Source : ACM

This entry was posted on Friday, November 23rd, 2007 at 10:11 and is filed under ACM. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.