US$ falls after recent sharp gains
08-01-2009
The U.S. dollar fell, reversing sharp gains against the euro and yen earlier this week, as the steep job losses in the U.S. private sector reignited fears of a deep recession. The slide in the dollar and renewed fears over the economy helped hammer oil prices which were down 12 percent. The largest single day percentage drop since 2001 came after the U.S. Energy Information Administration reported a much greater-than-expected rise in crude inventories in a sign of weakening demand amid the global slowdown. U.S. crude settled at US$42.63 a barrel - down US$5.95. London Brent dropped US$4.67 to US$45.86. U.S. Treasury notes fell amid renewed concerns that a spate of new debt supply will dilute the market despite more evidence of the dire employment situation in America. The 10-year Treasury note fell 7/32 in price to yield 2.48 percent.
