HiFX: Foreign Exchange Specialists

• Headlines

August 21, 2008

The U.S. dollar declined 0.65% against a basket of currencies today; the largest daily loss since the USD bull ran began in mid July 2008.  The primary drivers of the USD decline were the renewed concerns over the financial stability of Fannie Mae and Freddie Mac, geopolitical tensions between the U.S. and Russia and oil rallying to $122bbl.  While this move appears only marginal in comparison to the recent USD rally, it highlights the markets attempt to unwind the over bought nature present in the market place.