USD hurt as Geithner acknowledges risk in rescue plan

USD hurt as Geithner acknowledges risk in rescue plan

Story link: USD hurt as Geithner acknowledges risk in rescue plan

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The dollar was hurt by comments from US Treasury Secretary Timothy Geithner that there is risk involved in helping out the struggling US financial sector and by analyst concerns that the plan from the administration of US President Barack Obama will not be enough to save the sector.

In written remarks due to be delivered later in the day, Mr. Geithner said that the plan will take time to work, will cost a great deal of money, and will be risky.

He said there are two components to the economic recovery, making credit available once again to both businesses and individuals and to return to the creation of jobs and private investment.

Mr. Geithner also acknowledged in his remarks that the American public has so far been unconvinced that rescue efforts will succeed.

In late morning trade in New York the yen had strengthened in relation to both the dollar and the euro, trading at ¥90.735 to the greenback and at ¥118.1291 to the euro, while it took $1.3019 to buy the euro.

The pound was also weaker, with decline coming on separate reports showing that UK home sales are at their lowest levels in thirty years and that retail sales in the UK in January grew at their slowest rate since 1995.

At just past 11 a.m. in New York, the pound traded at 88.84p to the euro while it took $1.4654 to buy a pound and the yen was trading at ¥132.9645 to the UK currency.