The US currency has fallen to its lowest level against major currencies, and gold hit a new record amid worries that the US Federal Reserve may intervene again to avoid a recession. The dollar touched 1.30 per Euro, and parity against the Swiss franc in late trading 14 September.
The dollar rose against the Japanese Yen as the Bank of Japan intervened in currency markets to stem its rise. It has risen 14 percent this year against the dollar. The dollar initially fell against the Japanese Yen, as traders felt that the Japanese government would do little to stem the Yen’s rise. It was trading at 82.95 per dollar, its highest since 1995, after Naoto Kan was elected leader of the ruling Democratic Party of Japan.
Gold traded at $1,269 per troy ounce late Tuesday, 14 September.
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Japanese industrial output rose for the seventh consecutive month, by 1.4 percent, raising hopes that the governement’s economic stimulus was bearing fruit, according to figures released by the Ministry of Economy, Trade and Industry. Inventories dropped to their lowest levels in 21 years. Predictions were good for continued strong growth in manufacturing in October and November, as well.
The output gains were led by auto manufacturers and makers of technology. Industrial output is still down 18.9 percent compared to a year ago, but the Bank of Japan has been mulling whether to draw down the economic support it has given to financial firms to rescue the economyafter the financial meltdown following the collapse of Lehman Brothers late 2008. Reuters, Xinhua
