Dollar Recovers Slightly From 20-Day Low vs Pound
The dollar recovered slightly against the pound in early Thursday trading reversed direction after hitting a 20-day low of 1.8259, at 9.20am London time it stood at 1.8176.
The dollar weakened after the Fed said it had authorized other central banks to auction $180 billion in dollar funds to financial institutions "to address the continued elevated pressures in U.S. dollar short-term funding markets."
Central bankers have struggled to restore confidence in markets this week as banks hoarded money on concern more banks will follow Lehman Brothers Holdings Inc. into bankruptcy. The cost of borrowing in dollars for three months jumped the most since 1999 with the crisis spreading abroad as U.K. mortgage lender HBOS Plc slumped and Russia poured money into its banks.
Markets now anxiously await UK retail sales report for August. Retail sale is predicted to fall 0.4% month-on-month, following a 0.8% rise in July.
The dollar weakened after the Fed said it had authorized other central banks to auction $180 billion in dollar funds to financial institutions "to address the continued elevated pressures in U.S. dollar short-term funding markets."
Central bankers have struggled to restore confidence in markets this week as banks hoarded money on concern more banks will follow Lehman Brothers Holdings Inc. into bankruptcy. The cost of borrowing in dollars for three months jumped the most since 1999 with the crisis spreading abroad as U.K. mortgage lender HBOS Plc slumped and Russia poured money into its banks.
Markets now anxiously await UK retail sales report for August. Retail sale is predicted to fall 0.4% month-on-month, following a 0.8% rise in July.