The US Dollar has fallen to its lowest level in three years against the Japanese Yen in forex. It also has hit its weakest point ever against the Euro during forex trading. This comes amid the release of US jobless claims data, revealing a large rise in claims. This has shown that the US economy barely grew in the final quarter of 2007. Recession fears alongside the rising speculation of a large rate cut on the 18th of March is causing the US Dollar to fall at record lows. On the positive side, the falling US Dollar is making US goods cheaper overseas, raising exports and reducing its trade deficit for the first time since 2001. The National Association of Purchasing Management Chicago revealed today that its business barometer had fallen to 44.5 in February which is its lowest level since 2001. This has raised speculation of the likelihood of a 75 basis point Fed-rate cut to 2.25 on the 18th of March.
''It's broad dollar weakness because of concerns about the U.S. economy, U.S. yields, expectations of rate cuts and financial markets,'' said Tom Fitzpatrick, global head of currency strategy at Citigroup Inc. in New York.
''They don't care about the weak dollar. I absolutely believe the market is disappointed'' by Bernanke's comment.
In forex trading the US Dollar fell to a three year low against the Japanese Yen, falling to 103.69 Japanese Yen before settling on 103.74 Yen. The US Dollar fell at an all time low against the Euro, trading at $1.5239 per Euro, the weakest since the euro's inception in 1999. The Euro has gained 2.1 percent against the falling US Dollar for this month.
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