The dollar will rise

Foreign Exchange Market Finansy15-09-2008 dollar will rise last week on the currency market, though a controversial, yet was nearly as favorable for the U.S. currency, as both of the previous month. However, its growth is still beneficial both Europe and Russia. The only serious intrigue week was the resolution of the situation with the largest U.S. mortgage agencies - Fannie Mae and Freddie Mac, which finance nearly half of all U.S. mortgage market. As a result of the credit crisis they suffered heavy losses - the result of the loss was the de facto nationalization of agencies by the U.S. Treasury, as it became known on Monday. Surprisingly, the dollar initially reacted quite negatively to this plan. Ultimately, investors are still perceived transition of Fannie Mae and Freddie Mac under government control, like good news - they believe that it brings the stabilization of the U.S. credit market. Additional support to the U.S. dollar early in the week provided the fall in commodity prices. However, in the middle of the week rather unexpected for the investors decision of the Organization of Petroleum Exporting Countries OPEC to drastically reduce oil production by 520 thousand barrels per day to provide some support to European currencies as oil prices rose immediately.