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Although Wednesday was a very calm trading day on the foreign exchange market for many major currencies, the pound of sterling fell significantly, as a result of reveling of the annual budget statement by the government of the United Kingdom of Great Britain.

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.

The issue of the Federal Reserve last meeting minutes has caused certain growth of the US dollar in relation to main currencies throughout Forex trades. However the forecasts say that the current economic numbers and high commodity prices will contribute to the USD rate again. The United States currency was the reason of some decrease at the equity markets accompanied by the concerns of the traders about the growing inflation and slowing economic growth.

As we can see from the latest forex trades data the British pound has recovered its positions. One of the main reasons was the rapid growth of the producer prices in the United Kingdom. Input prices for the April overcame experts’ expectations and increased by the 2.4 percent and the output prices growth for the same period of time was 1.4 percent.

According to the UBS official the present economic data is not a positive one for the Monetary Policy Committee that will have to be less active just to keep an opportunity of decreasing interest rates.