As reported at 9:03 a.m. GMT on March 2, 2009, in London, the USD hit a 3-year high against a group of currencies as news spread that the United States federal government plans to inject additional money into the struggling American International Group and this prompted investors to buy the U.S. Dollar as a safe-haven currency. According to reports, the federal government is ready to inject about $30 billion lifeline into AIG as the company prepares to report a huge quarterly loss today, the largest quarterly loss in U.S. corporate history.
The Euro continues to come under increased pressure as the European Union leaders at the summit rejected the “mass bailout” idea of countries with struggling economies within the E.U., but agreed to review them on an individual basis. Concerns about the financial sector in the Euro Zone pushed European shares lower by 3% in early trading, following big losses in Asia. Consequently, the USD benefited and the Dollar continues to be perceived as the safe haven in Currency Exchange Trading.
At 08:43 a.m. GMT, the USD Index rose by 0.6% to 88.707 .DXY, slightly below an earlier high of 88.822, which is its highest level in 3 years. The EUR fell by 0.7% against the USD and traded at $1.2579. The USD dipped by 0.1% against the JPY and traded at 97.42 Yen, while the EUR fell by 0.8% against the Japanese Yen to 122.53 Yen.