Forex News: Euro down to 2 year low against the dollar
After the US dollar had a rocky start to the week, falling against numerous currencies, it rallied on Wednesday as investors moved away from riskier assets; this move propelled the dollar to a two year high against the euro.
Also benefiting from the investors on Wednesday was the yen, which saw a four and a half year high verses the euro. Sterling was also down around 3 percent against the dollar, as the Bank of England stated that the British economy was likely entering into a recession.
With the financial markets still looking fragile, traders are speculating that the dollar will rise further as investors look to the US currency for safety.