The U.S. dollar reached a new historical minimum against the euro today; it also fell below the 12-year old minimum level against the Japanese yen on the expectations of the more interest rate cuts from the Fed.
The record on EUR/USD was broken yesterday when it reached 1.5571 after even Bushs speech about a strong national currency preference couldnt help combat the pessimistic expectations regarding the U.S. economys future.
12-year old minimum on the USD/JPY at 100.00 yens per dollar was broken today, as the currency pair reached 99.75 level. The last time the dollar was so cheap against the yen was in October 1995. Japanese monetary authorities may now start watching yens Forex performance closely, because such a fast appreciation cant benefit Japanese economy at all.
There is a high probability that the Federal Reserve will cut the interest rate by 75 basis points next Tuesday on March 18, while almost every market analyst is sure that the rate will be cut by at least 50 basis points.
The EUR/USD reached 1.5626 at 9:10 oclock GMT today and is now trading at 1.5592 as of 9:28 GMT. USD/JPY is currently trading at 100.16 after reaching its record bottom.
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