Dollar Goes Down on Credit Market Losses

The U.S. dollar declined at a fastest pace in a month against the Japanese currency today as the credit market losses extended and the Federal Reserve probably won’t be able to raise the rates by the year’s end.

The dollar also fell against the euro and the Great Britain pound today as the previously expected rate difference decline became not so obvious to the Forex traders. Yen’s growth against the dollar was strong because the Japanese currency rose against other major currencies too as the carry trades unwound.

The concerns about the state of U.S. credit market turn investors to risk-aversion, thus stimulating conversion from USD to yen. According to some analysts dollar may drop to 1.5000 against the euro and 107.00 against the yen during the next trading week.

USD/JPY went down from 109.85 to 108.84 as of 7:46 GMT today — the fastest daily drop on this currency pair since July 15. EUR/USD rose from 1.4744 to 1.4796 with a daily high at 1.4833. GBP/USD gained from 1.8610 to 1.8661 with a daily maximum at 1.8702 so far.

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