*Japan CPI as expected, muted reaction from dollar/yen. LONDON, July 25- The euro struggled to hold above eight-month lows against the dollar on Friday, hurt by a dive in Germany's Ifo survey of business sentiment heading in to the end of the U.S. currency's strongest week since March.» Read More
The yen rose against the dollar and higher-yielding currencies for a second day, with investors shying away from risky assets amid deepening concerns over the credit turmoil and tightening liquidity.
The yen gained broadly Monday as investors cut exposure to risky carry trades amid expectations of widening financial sector losses tied to the U.S. subprime mortgage market.
The dollar surged against a basket of major currencies Friday and was on track for its biggest weekly gain in more than a year on profit-taking in the euro and month-end squaring up of positions by corporates.
The dollar rallied against most major currencies Thursday, buoyed by demand from U.S. corporations seeking to square their books by the end of the month.
The dollar rallied to one-week highs against the euro, the yen and the Swiss franc Wednesday with investors betting the U.S. currency's recent slump to multiyear lows had gone too far.
Fed Pres Donald Kohn moved futures 5 points up at 8 am ET by saying that if tighter credit conditions made credit more expensive and discouraged spending, it "would require offsetting policy action." This seems to imply more rate cuts, whether of the fed funds type or the discount rate.
The dollar rose against most major currencies Tuesday after Citigroup Inc. said it will sell a $7.5 billion stake to the Abu Dhabi government, restoring some confidence in battered U.S. banks.
The dollar was little changed against the euro and down against the yen Monday with investors finding few reasons to change their view that more Federal Reserve interest rate cuts are imminent.
The euro set a fresh record high against the dollar early Friday, though the $1.50 level remained out of reach when the euro was knocked more than a cent off its peak by comments from a euro zone policymaker.
The dollar hit new record lows against the euro, the Swiss franc and a basket of currencies on Thursday on growing belief that the U.S. Federal Reserve will cut interest rates again next month.
French President Nicolas Sarkozy will in a forthcoming visit to China call for an "equitable and fair" relationship between four major currencies -- the dollar, euro, yen and yuan, a senior French official said on Thursday.
The dollar slid to a record low versus the euro after minutes of the Federal Reserve's October meeting failed to give a clear indication on the central bank's next move on rates.
The dollar fell against the yen but held steady versus the euro Monday as global stock losses and high oil prices stoked uncertainty about the health of the U.S. economy and left investors wary of risky trades.
The dollar slipped on Friday, but was still on track for its biggest weekly gain in a month, with dealers wary of adding much to extended bets against the greenback with so much uncertainty surrounding the credit market.
The dollar rose against the euro but slipped against the yen Thursday as fears about the credit crunch's impact and falling equity markets led investors to pare back on profitable but extended trades.
The dollar fell against the euro on Wednesday as continued worries that a struggling U.S. housing sector and lingering credit problems weighed on sentiment and left intact a long-term declining trend.
The dollar slipped against most currencies Tuesday, resuming a long-term decline after a brief respite on Monday as investors expected further signs of housing weakness and sluggish consumer spending that could hurt U.S. growth.
Strong earnings and a better forecast from Wal-Mart is giving a boost to stocks this morning after a mixed picture in overseas markets. The dollar is weaker this morning and gold is recovering some ground after yesterday's sell-off.. Asian stock markets were mixed, with Tokyo closing about a half a percent lower. European markets were moving lower.
The market is finishing at the lows, three of the last four days. A tough situation, since traders now get unnerved in the last hour, even if the trend is neutral going into the close (as it was today), or even if the trend is up (as it was on Friday, and stocks still fell apart in the last hour).
Reversing the trade is the key story today: 1) The "buy tech, sell financials" trade--which has been astonishingly successful since July--is showing signs of unwinding as traders nibble on financials.