FOREX-Dollar up as euro pressured by fiscal, ECB jitters

Sandra Fickweil

03-30-2009

9:45

The article says that compared to other currencies, the dollar rose on Monday, due to the comments about the weak economies in Europe which undermined investor confidence. At the moment the ECB (European Central Bank) is more cautious also due to this weeks G20 nations meeting.

After the German finance minister said that "it could one day face trouble in terms of stability and credibility if the euro zone's fiscal responsibility pact was not taken seriously", the Euro had its biggest downturn. As the Dollar also had a great decrease, this month is tougher than analysts have thought it is.

After the Euro fell more than 1.5 % on last Friday, it slipped 0.2 % to $ 1.37< st="on">U.S. government debt to keep interest rates down

In Australia, the Dollar fell 1 percent to $ o.6868, and in New Zealand it decreased to $ 0.5642.

Sue Trinh, a currency strategist said: "The market will be on high alert for any comments that the ECB may be moving further into the realm of unorthodox monetary policy.".

On April 2^nd a new G20 meeting is scheduled where measures will be discussed to fight the global economic crisis. They hope to spend more money for the IMF in order to lift the world economy out of the recession by 2010.

Even in Japan, the industrial output fell significantly and demand weighed on an economy mired in a deepening recession.

On Friday the Yen fell 1 %, but is still very high compared to before.

As Japan's fiscal year ends this week, Yamamoto, head strategy at Royal Bank of Scotland, said: "On dollar/yen there's no momentum. I think the weak fundamentals of Japan should lead to a higher dollar/yen or yen crosses."

I think this article is very interesting as it illustrates the effects of the worldwide economy downturn. The article shows that the currencies around the world are getting weaker and weaker in picking several examples in order to point this out.

I was really surprised that the G20 scheduled again a meeting this week. They already met last week and this week's meeting was actually not planned. But this shows in my opinion that each single member of the G20 tries to do their best in order to help economy.

I am really curios if they make it and lift the economy out of recession until 2010.

http://www.reuters.com/article/usDollarRpt/idUST24952320090330?pageNumber=2&virtualBrandChannel=0&sp=true