Euro, dollar take freefall vs. yen
The euro and the U.S. dollar took a freefall against the yen Monday in Tokyo, with Europe’s single currency briefly trading in the upper 139 yen range and the dollar in the upper 102 yen level amid continued financial instability.
Stocks Fall Sharply in Europe and Asia
Stocks tumbled Monday in Europe and Asia, and oil fell below $90 for the first time since February as fears grew that the financial crisis is spreading to the world economy.
Financial Crises Spread in Europe
European nations scrambled on Sunday night to prevent a growing credit crisis from bringing down major banks as troubles in financial markets spread around the world, accelerating economic downturns on three continents.
In a Weak Climate, the USD Has Surprising Muscle
As the de facto reserve currency of the world, the US Dollar benefits from global upheaval, even those that originate in the United States. Currency traders are betting that because the United States was the first to falter, it will be the first to recover.
Nikkei plunges 3.6% Monday morning
Tokyo’s Nikkei index fell 3.6 percent to a four-year low, on doubts about the health of the global economy and effectiveness of the recently approved U.S. financial bailout package.
BOJ injects 1 tri. yen into Tokyo money market for 14th day
The Bank of Japan injected 1 trillion yen into the Tokyo money market Monday for the 14th business day of emergency operations in a further effort to facilitate interbank borrowing amid the financial market meltdown.
Iceland moves to shore up economy
Iceland’s trade unions are being asked to repatriate their foreign-invested pension funds, in the wake of a financial crisis that has seen the country’s third-largest bank nationalised, the country’s credit rating downgraded, and the country’s currency the Krona losing a fifth of its value against the dollar by Friday.
Australia’s recession not expected to be too bad
Australia will see a minor recession with some job losses, and inevitably a reduction in house prices. But the scale of the problem will be manageable as long as demand for raw materials out of China and India stays strong.
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Alfonso Esparza
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