U.S. Dollar Falls as Investors Worry about Recession
The U.S. Dollar dropped against the Japanese Yen today as data for September retail sales showed a sharp decline and investors are beginning to wonder if the government's $250 billion liquidity injection into the troubled banks will be able to keep the U.S. economy out of recession.
The report showed that last month, U.S. retailers recorded their biggest monthly drop in sales in more than 3 years and as a result that U.S. dollar fell to a session low of 100.88 Yen, a decline of more than 1% from late yesterday trading. The Euro also lost ground against the Japanese Yen and U.S. Dollar as stock markets faltered worldwide.
According to Kathy Lien of GFT Forex, New York, the retail sales data has highlighted the problems in the American economy, an indication that clearly, the U.S. economy is in recession.
The U. S. Dollar last traded at 101.10 Yen, down by 1.1% and hovered around a session low of 100.88 yen. At the same time, the Euro was down by 1.4% against the Japanese Yen at 137.37 Yen, while down by 0.2% against the U. S. Dollar at $1.3587. The Pound Sterling rose by 0.8% to $1.7549.