Sep 14, 2008
Euro, yen jump vs dollar on Lehman unrest
The euro jumped to a 10-day high against the dollar on Monday while the yen seemed set for its biggest daily gain since early 2002, spurred by the prospect of the collapse of U.S. investment bank Lehman BrothersThe moves came as Lehman's troubles pushed U.S. yields down and as the Federal Reserve and major U.S. banks tried to boost liquidity and mitigate volatility.
"If the market is dropping its assumption that the Fed's next move will be a hike, then euro / dollar starts to look oversold," Sean Callow, a strategist at Westpac Bank, said.
By 0330 GMT, the euro was quoted at $ 1.4453 per dollar, just off a high of $ 1.4479 and nearly 1.7 percent higher than Friday's close of $ 1.4227.
The yen was quoted at 105.50 per dollar, taking its gains since Friday to 2.25 percent.
Analysts said the steps to calm markets, which are braced for the collapse of Lehman Brothers, underscore the depth of the financial market problems and could reverse the dollar's rally since July.
by erectusplus at 9:37 PM |
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