Fri Jan 25 21:41:59 2008 - Dollar Rises on Investors Seeking Safe Haven

Investors seeking a safe haven in treasuries prompted the U.S. dollar to rise against the euro on Friday. The dollar rose upwards of 0.6 percent to $1.46 against the euro.

Analysts lost confidence the Federal Reserve will cut its interest rate by 50 basis points next week subsequent to the cut that took place on Jan. 22. This led to further strength for the greenback.

Still, the dollar lost 1.5 percent of its value against the euro after the Bernanke cut the overnight lending rate between banks to 3.5 percent unexpectedly.

Source: Lavenant Capital