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Dollar keeps on dipping against euro

14 October 2008 15:20 (UTC +04:00)

Euro climbed 1.1% against dollar on Tuesday, leaving this trend credible for a long-term.
Equities soared worldwide in the wake of a joint statement by the six euro-zone governments and Great Britain to use "all available tools" to support major banks and prevent their failure as part of efforts to shore up the ailing global financial system.
JPMorgan, Wells Fargo, Citigroup and Merrill Lynch are expected to release a low-performance report for the three quarters. Analysts say US inflation is expected higher than the eurozone.
Also, European banksâ€™ more effective bailout plan will not allow the open flow of capital into the market as in the US.
All these allow predicting that the dollar will continue to fall against the 15-nation currency.
This trend is expected to be in Azerbaijan too. The manat has started to fall against the euro and rise against the dollar.
Meanwhile, the US governmentâ€™s plan to directly inject capital into U.S. financial institutions will heavily target nine of the biggest companies, new reports say.
Bloomberg News lists the nine as Bank of America Corp., Bank of New York Mellon Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Merrill Lynch & Co., Morgan Stanley, State Street Corp. and Wells Fargo & Co.
The injections represent a new approach for Treasury Secretary Henry Paulson’s attempts to prevent a financial market meltdown from sending the U.S. economy into a prolonged recession.