The U.S. dollar dropped to the weakest level during the last 6 weeks against the European currency as the world’s stock markets rallied despite the delay in the U.S. automakers bail-out.
As it has become known yesterday, the $14 billion bail-out plan to rescue the General Motors Corp., and Chrysler LLC is likely to not get voted for by the Republican party in the U. S. Senate. The dollar declined today not only against the euro, but also against the Britain’s pound and the Japanese yen and the world’s stock markets went up moderately.
Some market participants remain too concentrated on the automakers bail-out plan, which isn’t a big deal according to some analysts. The overall state of the global economy and the liquidity should be taken into account when analyzing the currencies. And the risks are becoming less of a concern today as the stock markets turn to the Christmas and New Year rallies. (www.topforexnews.com)