The Dollar climbed to its highest since February 2007 against a basket of currencies on Tuesday as investors bet that interest rates outside the United States will fall sharply to shore up global growth.

Concerns over the global economy's health moved investors away from stocks into the safe havens of the Dollar, Yen and Swiss franc. The Federal Reserve launched a new facility to provide liquidity to financial markets, which analysts said unnerved investors by highlighting continuing problems.

Bank of England Governor Mervyn King said on Tuesday that Britain's
economy is probably entering its first recession in 16 years. He added the British economic outlook has not worsened as rapidly as it has in the past month for a very long time.

Yesterday 25bp interest-rate cut by the Bank of Canada sent the Canadian dollar tumbling to a three-year low against the Dollar. ...More...


More informations about ACM