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Dollar Soars to 1-Year High

Greenback climbs higher still after Fannie-Freddie bailout

By Jason Farago, Newser Staff

Posted Sep 8, 2008 8:06 AM CDT

(Newser) – The dollar rallied to a 1-year high against the world's currencies today, following Treasury's decision to seize control of Fannie Mae and Freddie Mac. After an early hiccup, the greenback advanced to $1.41 against the euro while also climbing against the yen, the pound, and the Swiss franc. While the Fannie-Freddie bailout reassured investors, reports that Asian banks might buy out Lehman Brothers also helped to push up the dollar.

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The dollar hit a one-year high against a basket of currencies today, after the Treasury announced its bailout of Fannie Mae and Freddie Mac. ((c) iChaz)

The dollar hit a one-year high against a basket of currencies today, after the Treasury announced its bailout of Fannie Mae and Freddie Mac. ((c) sunshinecity)

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Markets are starting to revert back to fundamentals and investors are asking: What does this news do for short-term growth in the UK and eurozone? Nothing. - UBS strategist Geoffrey Yu

Whether the Treasury's move is sufficient to more lastingly break the negative dynamics in the financial markets remains to be seen. - Analysts at Danske Bank, in a research note

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Dollar Soars to 1-Year High