Daily Forex News

Wednesday, the US dollar dropped to new multi-day lows against the currencies of UK, Switzerland and Canada on expectations that the Federal Reserve will cut interest rates by at least a half-percentage point to 1.00% today in yet another move to turn around the credit crisis that is threatening the United States with a deep and prolonged recession.

In early trading on Wednesday, the British pound jumped to new multi-day highs against the currencies of US, Europe and Switzerland. But the pound eased from a 5-day high against the yen.

Wednesday in Asia, the South Korean won trended up against the currencies of US and Japan as overseas investors snapped up shares and the benchmark stock index climbed for a third day. The won thus jumped to a 2-day high against the dollar and a 5-day high against the yen.

The Japanese yen that declined against its major counterparts in early Wednesday Asian trading reversed direction around 6:00 pm ET. The yen thus recovered from a 5-day low against the pound, 6-day low against the euro and a 1-week low against the dollar and the franc.