Dollar plummets on bailout worries

0 Shares

Uncertainty is affecting the stock marketInvestors concerned about their wealth were not given much reason to feel optimistic on Monday, as the dollar experienced record losses against the euro.

As of 4:22 p.m. EST, the dollar had fallen 2.33 percent to $1.4802 per euro, according to Fox Business. The day’s losses were the worst seen since the euro was introduced nine years ago.

Some analysts were quick to place the blame on the Fed’s $700 billion bailout plan, which would take bad debts off the balance sheets of banks.

"It’s an indictment of what Ben Bernanke and Hank Paulson are trying to pull off," equity strategist Peter Boockvar told the news source.

"People are realizing that the government’s plan is not necessarily going to be the answer," he added.

Meanwhile, investors seeking a more reliable way of growing their wealth turned to gold. Prices of the commodity increased by more than $44 per ounce, according to CNNMoney.com.

In addition to fears about government bailouts, speculation about whether or not the Federal Reserve would raise interest rates also resulted in a weakened dollar.
ADNFCR-1961-ID-18793450-ADNFCR

Personal Liberty

Personal Liberty News Desk

Join the Discussion

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.