The dollar fell broadly Wednesday against major traded currencies, plunging about 2 yen versus the Japanese currency to 109.84 yen. The reason for the dollar’s weakness nowadays was that rise in oil prices and soft U.S. manufacturing documents led currency traders to conclude that the U.S. Federal Reserve will have to continue to lower short-term interest rates to jump-start a sluggish U.S economy.

The dollar additionally deteriorated 1.50 cents vs. the euro to $1.4734 in mid-day Wednesday trading.

Rough start to 2008

Currency trader Andrew Resnick, previously of Next Capital, told BloggingStocks Wednesday the dollar’s fall took some traders by surprise.

“It doesn’t take much to upset the apple cart regarding the dollar, these days,” Resnick said. “A lot of traders, myself included, were stopped-out that wee hours with dollar-long positions, which is not the way you want to start the trading new year.” Resnick added that he was stopped-out, or went flat after a losing trade Wednesday on dollar-long day trades of euro / U.S. dollar and U.S. dollar / Japanese yen.

Continue reading Dollar falls broadly, plunges nearly 2 yen to 109.50 yen

Original post by Joseph Lazzaro

college credit mortgages income taxes investing payday loans law loans stock market refinance