Euro down against the dollar as yen rises
Monday sore another torrid time for the euro, hitting a 13 month low against the dollar as investors steered away from riskier assets. The news came as the European economies decided not to implement a coordinated rescue plan for its struggling financial institutions at the weekend.
The yen benefited from the uncertainty in the financial markets, as it broadly rose against the other currencies, pushing the Australian dollar to its lowest level in four years as investors looked to reduce risk exposure.
The news that no coordinated bailout plan had been reached in Europe was in stark contrast to the US, where the $700 billion bank bailout plan was eventually passed by Congress late last week. Investors still remain wary of the US financial sector, providing the dollar with only a limited rise in Monday trading.