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On Friday the Yen decreased its level against both the dollar and the euro, as market traders came to a conclusion that the worst recession in the global economy is coming to an end, which increased traders’ appetites for more risky assets.

Both dollar and euro rose versus the yen on Friday morning in Asia, as the fear of spreading of swine flu started to vanish. But events, that are about to happen in both Europe and the States will hit the Forex market with declining rates for both currencies.

American currency was pressured in early European trades due to end of month dynamics for fixing. Euro was rising in the first half of the day, reaching the level of 1.3385 against the dollar, and then decreasing back to the level of 1.3200.

Early morning Thursday trading sessions showed weakening of the US dollar against European, British and Swiss currencies. Declining, the dollar reached its almost two-week lowest against the pound of sterling. And the earlier session’s gains of dollar against the yen in the Asian market were pared.

Dow Jones closed at the level of p. 168.79, equal to 2.1%, while Nasdaq was closed at 2.3%, or p. 38.13, which means that Nasdaq closing was at the best level in about six months, while Dow Jones closed at a two-months highest level. The S&P was closed at the highest level in three months.

During morning trades on Thursday the yen continued loosing its positions against both the euro and the dollar, due to the governmental report regarding the decrease in Japanese industrial production by over 22% during the first quarter of 2009, comparing to the fourth quarter of 2008.

Although the dollar stood lower versus many major currencies, the USD level had minimal reaction to the information reveled by the Federal Reserve about American gross domestic product which in the first quarter fell much more than it was planned.

Right after the release of the information, the dollar almost didn’t change its positions and it is still holding its positions against both the euro and the pound of sterling.

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.

Dollar hits its low against the Yen, the Euro and many other currencies on Friday, as numerous hopeful signals appear in the world, showing possible slowdown in the pace of decline of world economy.

Positive data reports gave support and strengthened both Euro and the Yen. As a result of recent surveys done by the Ifo Institute in Germany, which indicated that after a long-term low in March, business confidence started it’s improvement at the beginning of the second quarter.

On Friday Yen hits its highest level against the US dollar in the past four weeks. Yen, which was one of the most purchased currencies in February and March, lost its popularity by mid-April.

Dollar has not been weaker against Yen since the 30th of March, since then it dropped by 0.9%. The main reason for these changes is the fact that China claimed rising of its gold reserves and the fact that China is able to diversify its reserves of foreign assets, though still staying with major world currencies.

Shares of Citic Pacific company decreased to its 10-year level last Tuesday after the company’s executive made wrong currency bets that might cause the lose of about $2 billions by the company.

Iceland currency is quite close to the dual exchange rate with the central bank that trades foreign currency to local banks at much lower price in comparison with international market rates. Last week the government of the country started to control the banking system of the country and has already put several restrictions on foreign exchange by carrying out everyday auctions intended to establish the value of country’s currency.

Australian dollar decreased to its 1985 year level in relation to USD after the investors decreased holdings of high profitable assets due to the opinion that the global economy will experience recession.

Nowadays there are a raising number of currency traders, marketers and strategists that are starting to think about dollar’s fate. Interestingly whether the finance ministers from the world's biggest economies will decide to support the US dollar.

On September 26 Financial site Bloomberg reported that because of risk aversion slowing capital inflows into appearing markets will hit India's rupee the most and China's yuan the least. This statement was made by Morgan Stanley.

ICE is an Intercontinental Exchange that is a global operator of futures exchanges and over-the-counter (OTC) markets. Today ICE made an announcement saying that ICE Futures US will start million-currency-unit versions of 12 current forex futures contracts in the November 2008. These new contracts are called ICE Millions. They include advantages of futures and OTC products as well and provide current forex market with transactional efficiencies and risk management methods.