BLBG: Dollar, Yen Gain as Geithner’s Bank Bailout Spurs Haven Demand
The dollar and the yen rose against most of the major currencies as a lack of details in Treasury Secretary Timothy Geithner’s bank rescue plan increased demand for the currencies as a haven.
The Swedish krona and the pound were the biggest losers against the dollar after the Riksbank lowered borrowing costs more than forecast and Bank of England Governor Mervyn King said the U.K. economy is in a deep recession.
“It’s a carryover from yesterday,” said Win Thin, senior currency strategist at Brown Brothers Harriman & Co. “We saw huge moves yesterday, with responses to Geithner.”
The dollar gained 0.2 percent to $1.2889 per euro at 10:56 a.m. in New York, from $1.2913 yesterday. The U.S. currency traded at 90.42 yen from 90.47. The yen appreciated 0.3 percent to 116.50 per euro from 116.83.
