Euro vs US Dollar Hit Record High As Investors Lose Confidence In Fed

The US dollar got crushed as many financial institutions questioned the Fed’s success in reviving liquidity in the credit markets. The Swiss franc and the Yen picked up the most against the crumbling dollar as both currencies retraced yesterday’s losses to hold near record highs as weary investors dumped their holdings of carry trades. Against the European currencies, the euro strengthened against the US dollar to touch another record high of 1.5573, with the British pound appreciating to hold above 2.02. The commodity currencies also picked up modest gains as oil prices surged to a new record high of $110.01.