U.S. Treasury Begins Implementation of Financial Plan
The U.S. government announced that the $700 billion rescue package will be rolled out starting this week after agreements were made with nine banks over the weekend. In return for taking large amounts of bad debt off the balance sheets of the participating institutions, the government will receive shares in each bank.
South Korea Lowers Interest Rates to 4.25%
In an emergency meeting to address the rapidly declining economy, South Korea’s central bank reduced its interest rate to 4.25% from 5% with some analysts predicting further cuts still to come.
U.S. Dollar Poised to Gain
As the world’s currencies struggle to retain value amidst a growing financial crisis, the U.S. dollar is poised to reaffirm its status as a safe haven. The recent sell-off in equity stocks and bonds in favor of cash will only “set the stage” for even further gains claims Barclays Capital in London.
RBC Capital Advises Selling Canadian Dollar in Favor of U.S. Dollar
With the likelihood of a further decline in demand for commodities including crude oil and potash – two commodities that helped power the Canadian loonie past the U.S. dollar less than a year ago – RBC Capital Markets has issued a sell advisory on the Canadian dollar in favor of the U.S. dollar.
