Dollar Declines to 2 1/2-Year Low Against Yen on Credit Losses
The dollar fell to a 2 1/2-year low against the yen as losses in credit markets widened and the U.S. economy showed more signs of sinking into recession.The U.S. currency also dropped to a record low against the Swiss franc on analysts’ expectations U.S. financial companies including Merrill Lynch & Co. will follow Citigroup Inc. in writing down the value of investments linked to U.S. mortgages. The yen climbed against the South African rand and the New Zealand dollar as a slump in global stocks prompted investors to reduce carry trades funded with cheap loans from Japan. Read more from Bloomberg.