On Friday the Dollar hits its lowest level in the past three weeks, decreasing below Y97, as a result of multiple negative news reports from the American automakers, which made players instantly sell a lot of US dollar.
As the Wall Street Journal reported on Friday morning, that American auto company Chrysler LLC may file for bankruptcy as soon as next week, which will lead to a much deeper recession in the American economy, the dollar started losing its positions.
And in the process of selling dollar by the players, it went even lower during the Friday session, hitting Y96.98 (the lowest the dollar has been since the end of March). This caused stop orders, which pushed the dollar lower than 97.50. And the dollar is expected to fall even more in the nearest few days.
Other currencies, like the Euro and the British pound, as they are also sensitive to risk, decreased versus the Yen, as the market-players were trying to stay on the safe side with the Yen.
The further weakening of the British Pound was also caused by the possibility of lowering the AAA rating of the United Kingdom by ratings agency, as a result of its bargaining on the public debt.
The main attention of market players is now drawn to the events in the American car industry and the US banks.