US Currency Value Lowest in Years

2008-12-16 04:47:19 (GMT) (WiredPRNews.com - Business, News)

US currency values fall against the euro and yen.

Wired PR News.com – The dollar has decreased in value in comparison to the euro and yen. As reported by AFP, the euro rose to be the equivalent of 1.3695 dollars from 1.3380. The dollar was also reported to have dropped to 90.63 yen on Friday after having reached the equivalent of 88.40 yen for a short period the same day, which is the lowest it has been in 13 years. The British pound was said to have fallen in currency value as well.

As mentioned in the AFP report, the United States’ Federal Reserve will complete a two day meeting on Tuesday, in which they are expected to decrease U.S. lending rates to below the current 1.0 percent. There are fears that the central bank’s new base lending rate may be as low as 0.25 percent, and have an even greater effect on US currency value. As quoted in the report of Global Forex Trading’s Kathy Lien the decision “will be remembered for decades to come as the Federal Reserve brings interest rates down to the lowest level this generation has ever seen.” Lien further noted “With two realistic options on the table and economist and traders divided on how much the Fed will cut interest rates, the only certain outcome is significant volatility for the currency market.”