Market indices dropped by an average of ~3.5% today, seeing 1997 lows.
From today’s Wall Street Journal, the drops are because of uncertainty on how Washington will deal with US banks, and how Europe will cope with the crisis. Currencies didn’t fare too well either, with lots of selling overall.
The euro fell more than three U.S. cents to $1.2697 by late afternoon from a nearly two-week high of $1.2992 overnight, with a decline in U.S. stocks and crude-oil futures on renewed investor risk aversion.
Traders sold the common currency, along with other riskier assets, on uncertainty over Washington’s plans for U.S. banks, as well as cautious remarks from European Central Bank President Jean-Claude Trichet.
Mr. Trichet warned Monday that the euro zone’s financial system is facing challenging times as financial markets and the real economy are dragged in a downward spiral. He said financing in the euro zone is dwindling. [link]
The table below shows the value of various currencies per one dollar. Smaller numbers relative to the past mean a dollar depreciation and are shown in red. Larger numbers relative to the past mean an appreciation. Lots of bloodshed today.