Excerpt from: GFT News
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| February 10, 2009 | | Yen gains against dollar in forex trading | This morning, Timothy Geithner, the Treasury Secretary for the Obama Administration, made remarks about the economy while unveiling his bank rescue plan. The plan is expected to cost between $1.5 and $2 trillion. Additionally, it will contain a number of measures, including private funding in addition to public funding.
On the news of the expenditure, as well as continued pushes by President Barack Obama to get an economic stimulus package passed in the Senate, the U.S. dollar is falling to the Japanese yen in currency trading on the FX market.
Indeed, the yen is becoming the safe haven currency of choice in forex trading, while investors become concerned about the long-term viability of the U.S. dollar. The amount of debt expected to be racked up be economic stimulus and bank stabilization measures is expected to undermine the strength of the greenback down the road. Fundamentals aren't the focus now, but what if they are later?
| Topic Tags: bank rescue, Barack Obama, currency trading, forex trading, FX market, Obama Administration, Timothy Geithner, U.S. dollar | |
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