What is going on in the worldfirst the dollar gains against the pound....then I read this.....can anyone explain?
THE Australian dollar yesterday collapsed to a 2 1/2-year low, suffering one of the worst falls since it was floated on international currency markets in the early 1980s, as fears grew that a global recession would end the commodities boom.
The Reserve Bank's surprising move to slash the official interest rate by one percentage point did little to reverse the negative sentiment towards the currency.
The rate cut spurred short-term momentum in the stock market, leaving the S&P/ASX200 78.3 points higher at 4618.6.
Fear of recession forces down Australian dollar | The Australian