Yen hits high against the dollar
The yen was boosted to a 5 week high against the dollar, as investors continued to be wary of the global economic slowdown. The news comes as the Reserve Bank of Australia unexpectedly cut its interest rates by 1% to 4.25%; meaning that a total of 3% has been cut in the last four months.
The dollar fell 0.4% in early trading against the yen, bringing a 5 week high of 92.64 yen. The euro also fell against the yen, ending at 117.25 yen. The euro didn’t fair too well against the dollar either, falling 0.4%, whilst sterling took a 0.6% hit against the greenback.
The Australian dollar briefly rebounded after the bank of Australia’s rate cut, but still ended 0.3% down verses the US dollar. The money markets are now anxiously waiting rate cuts in other areas, as central banks throughout the world look to stabilize their economies.