Markets await Decision by Senate and House on U.S. Bailout Plan
The U.S. Dollar dropped slightly against the Euro today, after seeing some good gains during yesterday’s trading day, as investors’ awaited a decision by the U.S. Senate about the revised financial bailout plan by the U.S. government.
European policymakers have impressed upon the U.S. Senate the need to quickly approve the revised bailout package of $700 billion when the Senate meets today. Basically, the bailout plan will enable the U.S. government to acquire “toxic” assets from the U.S. financial institutions. According to analysts, if the bailout package is ratified by the Senate, the House of Representatives will feel the heat and they will also approve it when they meet again tomorrow.
According to Adam Cole at RBC Capital Markets, London, the U.S. Dollar is consolidating its yesterday’s gains, and its future direction will be influenced by the vote in the U.S. Senate, as well as tomorrow’s vote by the House of Representatives.
On October 1, 2008 at 11:15 GMT, the Euro climbed 0.3% to $1.4150, while the U.S. Dollar changed slightly at 106.12 Yen. The U.S. Dollar fell .25% versus a basket of 6 major currencies; yesterday, the DXY rose 2.5%, -- the biggest one-day percentage surge in almost 15 years.