Central Banks in Europe Boost USD Liquidity, Dollar Continues to Stumble

Published September 22nd, 2008 - 02:33 GMT
Al Bawaba
Al Bawaba

The ECB allocated USD 40 bln in a one day tender, at a marginal rate of 3.25%, with 67.25% of bids alloted at the marginal rate. Bids amounted to USD 82.1 bln from 48 bidders. Separately the SNB allotted USD 10 bln at a weighted average of 2.72% in today's overnight repo auction. Both tenders are part of the co-ordinated effort to boost USD liquidity. Meanwhile, uncertainties in the U.S. continues to fuel bearish sentiment for the dollar, with the greenback losing ground against all of its major counterparts.