Dollar collapses by fears in financial sector
The dollar fell broadly in this Thursday pressured by persistent worries about the U.S. financial sector, which also caused a leak of risky transactions, bringing the Japanese yen.
At current prices, the index dollar, which measures its progress against a basket of six major currencies, aimed to register their biggest daily fall in two months.
An increase of 2% in oil prices shook the feeling negative for the dollar, which was already high on fears about the viability of U.S. mortgage giants Fannie Mae and Freddie Mac, and the investment bank Lehman Brothers.
"The dollar is having a broad-based correction due to concerns about the financial sector, notably the issue of Fannie and Freddie. Lehman also received the attention of the market," said Vassili Serebriakov, foreign exchange strategist for Wells Fargo in New York.
The Financial Times said on Thursday that Lehman, which some analysts may soon announce depreciation of up to U.S. $ 4,000 million, held talks to sell 50% of its shares to CITIC Securities signature china and the state Korea Development Bank, but both companies not accepted because they considered the price too high.
A spokesman for Lehman refused to comment on the report.
The resurgence of concerns about one of the most reputable banks in Wall Street and increased risk aversion the dollar fell even more than the maximum of Protected content had played this week, while the yen encouraged.
The yen tends to increase during times of lower appetite for risk as investors sold high performance and risky assets purchased with the Japanese currency, low interest rate.
However, Serebriakov remained optimistic about the prospects of the dollar.
"Given the margin of movements of the dollar in the past two weeks, this correction is not very surprising and in fact is quite modest. I do not think that cast doubt on the recovery of the dollar," she said.
In the first business in New York, the dollar lost 1.4% against the yen at 108.27 yen, en route to its largest daily loss since March. This prompted a fall of 0.7% in the index dollar, to Protected content .
The euro fell 0.7% against the yen to 160.76 units in Japan, but earned 0.6% against the dollar, to U.S. $ 1.4834.
Some data on Thursday showed a drop in initial applications for unemployment insurance briefly served to the dollar trimmed losses to the euro.
The currencies of high income and relatively more risky as the dollars of Australia and New Zealand decreased significantly against the yen, losing 1.3% to 0.8% and 94.62 yen to 77.59 yen respectively.