Forex News – Dollar stalls as concerns over US bailout continue
The dollar lost over 1% against the yen today as investors raised yet more concerns about the US Government bailout plan. The US government plans a $700bn plan to bailout banks and analysts and investors alike are sceptical whether it will help the credit crisis.
The dollar was 1.1% lower versus the yen on Monday, after a two week high against the currency on Friday last week. The euro also took a 0.5% loss against the yen, lowering it to 154.61 yen.
It is unknown when the US bailout plan will be initiated, but it is expected to be sometime towards the end of this week. The rescue plan follows a spate of financial problem in the US including the Lehman Brothers bankruptcy, the sale of Merrill Lynch & Co and the government takeover of America’s biggest insurance company AIG.