On the 11th February, USD rates to EUR and JPY decreased. The deceleration was caused by the reaction to the US banks support plan introduced by the new US government. Experts claim that the steps offered will not be of great help to loan institutions and therefore the economy will not be stabilized.
The Bloomberg claims that EUR cost on Wednesday constituted 1,2925 compared to Tuesday’s 1,2913. EUR rates to JPY by that moment was decreasing to 116,43 compared to Tuesday’s 116,83.
USD/JPY decreased by 90,8 compared to 90,47 the day before.
Timothy Geithner, the US Secretary of the Treasury, announced that total finance support to the finance system may reach 2 trillions USD. However, the market was wondering about the measures to be taken as for the problematic assets.
“The plan is not going to be that quick and faultless decision the investors were probably expecting. So the disappointment is quite evident”. – explains Danica Hampton, currency analyst, Bank of New Zealand Ltd.
We have to mention that before the analysts were expecting that traders will be buying USD and JPY as the safest rates. However, these expectations were not meant to come true and JPY is now considered to be the safest.
