The Dollar was lower on Thursday, after earlier climbing to a fresh two-year high against the Euro and a basket of currencies, after aggressive Dollar selling by Brazil's central bank helped lend some
stability to emerging market currencies. Emerging markets have been hit by the global financial crisis in recent weeks as Dollar investors offloaded assets in these markets and repatriated the funds. Trouble in emerging markets has compounded worries about the outlook for the global economy, with countries such as Hungary and Argentina taking desperate measures to shore up their ailing economies.

Both the Dollar and the Yen have surged against higher-yielding currencies this week as risk demand has sharply reduced. Extreme low liquidity has led to severe volatility in most markets, and analysts said currencies remained vulnerable to erratic moves. The Yen has shot up drastically versus the Euro and other high yielders such as the Australian and New Zealand Dollars as investors dumped po ...More...


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