Currencies

The Dow opened up 100 points on Friday before profit-taking kicked in and a steady decline eventually saw a close down 171.

The Dow managed to add another 100 tenuous points as the Bush Administration steps up its fiscal rescue.

Hopes of a rescue for stricken US bond insurers helped to encourage buyers back into stocks as the Dow turned down 300 into up 300.

Wall Street saw what happened in the rest of the world and opened the Dow down 464 points. But the Fed decided to make an emergency rate cut of 75 basis points and the Dow came racing back.

Stocks in Asia, Europe and elsewhere suffered huge falls yesterday and overnight as all confidence is lost in the financial sector and the Bush rescue package is seen as inadequate.

ANZ Bank and Danske Bank have revised their currency estimates for 2008 and while the US dollar should continue to struggle the yen rather than the Australian dollar is tipped to benefit.

The Dow managed to rise 38 points despite weak economic data, spurred on by the tech sector. The Nasdaq was up 1.5%.

The Dow lost 25 points in a volatile but thin session last night, following news the Chinese government had bought into Morgan Stanley.

The Dow closed up 65 points after the ECB injected no less than US$500bn in two-week credit.

Wall Street’s mood has turned decidedly sombre as fears of a recession gain further traction. The Dow fell 172 points.