Euro fell against the dollar and the yen against the backdrop of talk that the European Central Bank reduce the rate to a record minimum against the backdrop of worsening of the recession. This will reduce the investment attractiveness of European assets. Euro dropped against the 15 most actively traded currencies after the European Commission yesterday announced a revision of forecasts for economic growth in the euro down to -4% in the current year. This is two times higher than expected three months ago. The strengthening dollar against the euro also contributed to the message in the Wall Street Journal that 19 out of 10 American banks may not pass the stress test, without additional funding. This news led to a downturn in the markets of risky assets and increased interest to the U.S. as a currency of refuge.
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