US dollar index falls below 80
Posted by lowem,
Mon Aug 06 17:48:00 UTC 2007
Fears of a global credit squeeze and worries about U.S. economic strength swept across financial markets on Monday [6 Aug 2007], shaking up stocks, knocking the dollar to a 15-year low and straining popular currency trades.
Risk aversion, meanwhile, threatened the "carry" trade in which investors have borrowed in low-yielding currencies such as the yen to invest in assets in higher-yielding ones. The yen rose. The dollar was down a third of a percent at 117.66 yen. High-yielders such as the New Zealand and Australian dollars were weakening against the yen.
The dollar fell to a 15-year low against a basket of currencies, as speculation about the credit market and softening U.S. data prompted thoughts of a U.S. interest rate cut. The dollar index fell below the psychologically key 80.0 level, while the euro rose to within sight of its record high above $1.3850 struck two weeks ago.
- Something that a lot of people have been watching for : the USDX falling below 80, crashing through a multi-year support level from which it had repeatedly bounced off earlier. But apparently not this time. Watch out below !!!
