The dollar dropped to a record low against a basket of currencies and the euro Thursday, after Bank of America's third-quarter earnings results missed estimates, renewing concerns of a U.S. economic slowdown.
The dollar fell broadly Wednesday after a report showed housing starts dropped to their lowest level in 14 years in September, adding to concerns that the housing market may drag on the US economy.
The summary of the Beige Book released by the Federal Reserve prepared at the Federal Reserve Bank of Dallas and based on information collected on or before October 5, 2007.
The dollar rose against the euro and high-yielding currencies such as the New Zealand dollar Tuesday, as investors grew cautious of risky trades amid a sell-off in global equities and a surge in oil prices.
Federal Reserve Chairman Ben Bernanke spooked investors by saying a full recovery in financial markets may not happen right away.
Foreign investors fled from U.S. assets in August as a meltdown in the U.S. subprime mortgage market triggered a global credit crunch, Treasury Department data showed on Tuesday.
Treasury Secretary Henry Paulson warned that the housing correction would continue to hurt the economy and financial markets and called for assistance for homeowners.
The text to a speech given by Federal Reserve Chairman Ben Bernanke on "The Recent Financial Turmoil and its Economic and Policy Consequences" on October 15, 2007 in New York City.
The yen hit its lowest levels in around two months against both the dollar and euro on Monday, as risk-seeking investors took advantage of cheap Japanese borrowing costs to fund purchases of high-return assets.
U.S. consumer sentiment fell slightly in early October to its lowest in more than a year as uncertainty grew about the extent of the housing slump, a survey released Friday showed.
President Bush said in an interview with the Wall Street Journal Thursday that he believes in a "strong dollar policy" and that a trade war with China is not in the US interest.
Federal Reserve officials Tuesday said the U.S. economic outlook is unclear, but credit market strains that led the central bank to cut interest rates sharply last month are easing, suggesting a follow-up rate cut is not a done deal.
Trade policy emerged as the hot-button issue among the nine Republican presidential hopefuls squaring off on Tuesday, but taxes, economic growth and the health of the American middle class also got their fair share of attention in the debate.
All of the Fed's policy-setting committee agreed that a half-point cut in rates was needed to shield the economy from credit disruptions and the housing slowdown, minutes of the Sept. 18 meeting showed.
The U.S. subprime housing crisis will not peak until 2009 and total defaults could reach $150 billion, Standard and Poor's said.
The dollar gained in quiet trade Monday against most major currencies as investors reassessed risk and bet that Friday's sell-off on a U.S. payrolls report was overdone.
Former Federal Reserve Chairman Alan Greenspan said Sunday that the rate of U.S. economic growth was slowing, but the odds of a recession are less than 50%.
The U.S. federal budget deficit fell to $161 billion in fiscal 2007 from $248 billion the prior year as growth in tax receipts, fueled by capital gains and other non-withheld income, outstripped spending growth, the Congressional Budget Office said on Friday.
The dollar weakened Friday, after dealers decided a relatively solid U.S. employment report was not enough to move the U.S. economy off a slowing path and keep the Federal Reserve from possibly cutting interest rates.
The Labor Department's jobs number tracks people in the work force, but it doesn't account for millions of workers classified as independent contractors. Now, a battle is brewing over whether contractors like Gupertino Magana are getting a fair deal.