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The sharp fall of the USD in relation to the Euro was caused by the worries concerning the US mortgage market and its consequences for the country economy.

The intention of the US government to provide some emergency assistance to large mortgage companies – Fannie Mae and Freddie Mac caused sharp decrease of the confidence in this market and the hike of the Euro to the point of $1.6038. Members of the market suppose that the assistance to the mortgage companies will be nothing but additional several billions of dollars that will increase the national debt and thus decrease credit rating of the whole country.

The United States dollar is still decreasing in relation to the Euro and it seems to reach its lowest point again. This was caused by the reason that the US Treasury intention to provide emergency assistance to the largest mortgage groups – Fannie Mae and Freddie Mac was not sufficient to settle down the rest of market members.

According to the last forex trades data the European currency comes to the point of $1.60 and the British pound increases over the $2.00 mark this is the first time the British currency has reached this point throughout current month.