DOLLAR HITS NEW 12-YEAR LOW VERSUS YEN

The U.S. dollar hit a 12-year low versus the Japanese Yen in trading today, dropping to 99.8 yen and settling in around 100. In the past 24 hours the dollar has weakened 1.6% against the Japanese yen, which will make Japanese-manufactured goods more expensive in the U.S. when paid for with U.S. dollars. In turn, American-made goods will be less expensive to Japanese consumers who will pay in yen.

From The New York Times:

We are entering dollar crisis mode," said Derek Halpenny, currency economist at BTM-UFJ in London.

"Looking at the markets there is a complete loss of confidence and that's because the markets are concerned over the U.S. financial sector and ultimately what the (Federal Reserve) will be forced to do to support that sector," he said.