The upcoming G-20 meeting is getting the most attention this week as global countries seek ways to find the recession bottom. The US dollar and yen strengthened over the weekend in response to investors returning to investing in safe haven assets.
The dollar strengthened against most major global currencies as the market resettles after a tumultuous week. The euro, UK pound, and Japanese yen weakened as global economic data shows continued retrenchment.
The Japanese yen fell again as news of the economy shows conditions worsening. The South Korean won has been the worst performing currency in Asia so far this year, but strengthened against the dollar as the US dollar weakened overall this month.
The UK pound showed surprising strength after February inflation was reported at 3.2%. The US dollar and yen rallied a bit against most major global currencies more as an adjustment offsetting the Monday declines.
The US announced a plan to rid bank balance sheets of the toxic assets which led to the dollar weakening against major global currencies and the stock markets soaring. Around the world everything seemed to strengthen except the yen and dollar.
The US dollar weakened again over the weekend against most major global currencies in response to expected drops in U.S. yields due to the implementation of a policy of quantitative easing. Eastern Europe is back in the news as central banks plan to lower benchmark interest rates to fight continued economic declines even as currencies values plunge.
The US dollar fell against 13 of 16 major global currencies as investors began to assimilate the new Federal policy of quantitative easing. The UK economy sinks lower and the Chile peso rises significantly due to copper price increases.
The US dollar fell quickly as the US Federal Reserve announced what is in effect a policy of quantitative easing by agreeing to add another $1 trillion plus to the economy. The effect of this decision led to quick responses in world currency rates.
The euro strengthened against the US dollar to a one month high as investors began to move away from safe haven investing due to major US banks indicating profit making this year and the G-20 taking charge of global efforts to clean up toxic assets. The Australian dollar also reached a near thirty day high.
The US dollar weakened against most major global currencies as investors sought riskier assets. The Australian and New Zealand dollas are rebounding after a month of lows.