Dollar slides against yen on Fed's dim outlook
The dollar tumbled to a 15- year low Wednesday versus the Japanese yen after the Federal Reserve said it expected a weaker U.S. recovery and took steps to support the economy.
The dollar surged against most other currencies around the world, however, with investors still seeking access to one of the world's favorite places to park funds, short-term U.S. Treasurys, as economic reports and forecasts Wednesday from the United States to Asia to Britain suggested a slowdown in the world recovery.
The euro, which is used by 16 European countries, fell below $1.30 for the first time this month. In late New York trading it was worth $1.2882 compared with $1.3196 late Tuesday, while the British pound receded to $1.5672 from $1.5881.
Yields on U.S. government debt tumbled as investors poured into Treasurys, considered supersafe purchases.
It's the dollar's biggest one-day jump against a basket of six major currencies, which include the euro, pound, yen, Swiss franc, Canadian dollar and Swedish krona, since December 2008, according to data from Thomson Reuters. The index rose nearly 2 percent in trading Wednesday.
"This is just huge risk aversion," said Joseph Trevisani, chief market analyst at FX Solutions.
The dollar tumbled to as low as 84.75 yen Wednesday, the lowest point since July 1995. In late New York trading the dollar recovered a bit to 85.24 yen, compared with 85.27 yen late Tuesday. - AP
'Need to step up regulations and testing' "Car fluff" is being deposited at Brookhaven landfill at a fast clip, but with little discussion. NewsdayTV's Virginia Huie and Newsday investigative reporter Paul LaRocco have the story.
'Need to step up regulations and testing' "Car fluff" is being deposited at Brookhaven landfill at a fast clip, but with little discussion. NewsdayTV's Virginia Huie and Newsday investigative reporter Paul LaRocco have the story.
