In 2008, along with the fall in stocks in America, both the euro and the pound, and, accordingly, commodity currencies, as they depend on production, fell. And the dollar strengthened on the contrary.
It was another rocky day in the foreign exchange market with currencies taking their cue from equities. At the start of the NY session, the greenback traded lower against all of the major currencies but as the day progressed and stocks came off their lows, so did the U.S. dollar. In the past few days, the Dow lost what it earned over a 2-month period and given the magnitude of the moves seen this week, there’s no doubt that sentiment is shifting. Unfortunately the declines can become lasting as investors who fear further losses take profits on positions they have held onto for some time. A lot of money was made in the equity market over the ... (full story)