USD Rallies on Wall Street Crisis
September 15, 2008
On the news of Lehman Brothers filing for chapter 11, the acquisition of Merrill Lynch by Bank of America and funding issues facing AIG, Wall Street has been sent into widespread frenzy. Not knowing which way to look traders have preferred to rush on mass to the exit doors unwinding any potentially risky investments, with the net effect being a spiralling decline in the worlds major equities indices. Despite the crisis stemming from the United States the USD has been the major benefactor on the day as traders look to invest in the safe haven of US treasuries. On the back of these flows the USD has managed to rally across the board with noticeable gains of over 2 cents against the Euro in particular from its overnight lows at 1.4479.