The dollar remains under pressure against all major currencies on fears that the Federal Reserve may need to slash interest rates further to stop the downward spiral in the credit markets.
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| American nightmare: a tense time on the New York Stock Exchange as the dollar continues to fall |
The greenback was at 100.57 against the yen after breaking below 100 yesterday in a day of wild trading, that set off alarm bells at Japan’s Keidanren industry lobby.
It touched a record low of $1.5651 against the euro and came within a whisker of parity with the Swiss franc for the first time in history.
It rebounded somewhat in London today and was trading at $1.5582 by mid morning.
However, Mitul Kotecha, head of currency strategy at Credit Agricole, said: “The real risk remains that we get a dollar rout. The news from from the US is consistently negative and investors are actually not overly long euros.”
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