On March 31, 2008, in early trading in Sydney, the U.S. Dollar was mixed against most major currencies, however, traders believe that pressure will continue to mount on the U.S. Dollar until investors are confident that the liquidity crisis and the U.S. economy improves.
According to reports, the economic fundamentals in the Euro Zone remains strong, while the U.S. economy falters. The Japan economy continues to be sound, although inflation is increasing. On Tuesday, April 1, 2008, the Bank of Japan will release the Tankan Report, which will give investors a better idea of which way the economy is going.
On March 31, 2008 at 23:20 GMT in the Sydney market, the U.S. Dollar traded at 99.19 yen, compared to 99.22 yen on Friday in New York, while the Euro traded at $1.5789, compared to $1.5795 on Friday in New York.
According to Mr. Tony Morriss, a senior currency expert at ANZ, investors are cautious in the market because of the poor performance of U.S. stocks on Friday, and the demand for yen by risk adverse investors. This week, investors will be anxiously looking forward to the release of several U.S. economic reports and the testimony before the House of Representatives by the Federal Reserve Chairman, Ben Bernanke.