US dollar moves down and Euro up

US dollar moves down and Euro up
# 15 September 2008 15:27 (UTC +04:00)
According to the official rate by the National Bank of Azerbaijan, the dollar was trading at 0.8118 manats now.
Manat rose 0.27% against dollar from September 1 and 0.45% from September 12.
The current level of the rate was only reached in the first ten-day of August.
Such rapid strengthening of the manat is due to the world market trends.
Recently, the dollar fell sharply against the euro and other major currencies (1.8%), after Lehman Brothers’ bankruptcy statement which shook the US financial system.
The Federal Reserve said it was making it easier for financial institutions to access Fed liquidity by easing terms on its borrowing facilities and accepting a much wider range of assets as collateral.
It widened the set of assets eligible as collateral for loans of Treasuries to include all investment grade paper, and raised the size of these Treasury loans to $200bn.
The Fed also suspended rules that prohibit banks from using deposits to fund their investment banking subsidiaries.
The Fed’s intervention was followed on Monday by the European Central Bank and the Bank of England.
Cash dollar exchange rate also fell in Azerbaijan from 0.8140 (buy) last week to 0.8090 manats.
Interestingly, there is an inverse trend in the official rate for euro. Falling dollar made euro float up and euro was trading at 1.721 manats now, compared to 1.421 manats on September 12.