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The dollar strengthened against nearly all of its major trading partners

Mon, Oct 6 2008, 11:49 GMT
by Wachovia Research Team

Wachovia

The dollar strengthened against nearly all of its major trading partners, reaching 14-month highs against the euro as the effects of the credit crisis become more visible in the eurozone. The British pound also saw its biggest weekly drop against the dollar in 16 years upon negative economic data and market sentiment that the U.K. economy may already be in a recession. Equity markets in Asia, the eurozone, and the U.K. are sharply lower this morning, some are down over 6% based on fears that the credit crisis is going to worsen.

Investors are cutting holdings of higher-yielding assets amid speculation that the global economy will not be able to avoid a recession. The effects of this speculation also led the Australian dollar to its worst week since 1985. This flight to quality also helped to make the Japanese yen the only currency to appreciate against the dollar in September.

The Mexican peso slumped against the dollar on concern that the financial rescue plan may not be able to prevent a recession in the U.S., the biggest importer of Mexican goods.

The strength of the Canadian dollar has historically been linked to the price of commodities and this

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Published on  Mon, Oct 6 2008, 11:49 GMT

Archive

• The dollar strengthened against nearly all of its major trading partners
  Published On Mon, Oct 6 2008, 11:49 GMT
• Yesterday's trading showed continuing strength for the US Dollar
  Published On Fri, Oct 3 2008, 12:17 GMT
• Today's economic releases include Initial Jobless Claims
  Published On Thu, Oct 2 2008, 12:00 GMT
• Yesterday's trading yielded strong results for the dollar
  Published On Wed, Oct 1 2008, 12:09 GMT
• Yesterday proved to be one of the most volatile days in recent history
  Published On Tue, Sep 30 2008, 12:36 GMT

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