The yen saw a large rise on Wednesday, boosted by the growing concern of the US auto industry and as uncertainties in the global economy continue on the stock markets. The US auto firms including Ford, General Motors and Chrysler have warned US congress that the industry is in trouble, and are seeking billions of dollars from the government to help.

The yen was up 0.3 percent against the dollar and 0.5 percent up against the euro, as investors predicted further rate cuts in the UK and US. Both the Federal Reserve and the Bank of England are expected to release detail of their policy meetings later today, which will give some indication on how far and how quickly the rate might be cut again.

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 dollar today took the initiative and posted a one year high against the euro, whilst the New Zealand dollar fell behind on news of a big interest rate cut.

The New Zealand dollar dropper over 1 percent against the US dollar and nearly 2 percent against the yen; this dip came after the New Zealand Central Bank lowered its interest rates for the second successive time.

Ben Bernanke, the head of the Federal Bank today signalled that concerns about inflation and a slight recovery of the economic markets make it unlikely for more rate cuts.

He said that over the past few months, the government’s stimulus package and a succession of rate cuts would provide better economic conditions.

The Federal Reserve’s statement sent crude oil $3 lower, while the dollar was close to reaching a three month high.