The dollar fell broadly on Tuesday, rattled by signs that the U.S. financial sector, and thus probably the economy, is still far from out of the woods. The Wall Street Journal reported on Tuesday that U.S. investment bank Lehman Brothers (LEH.N: Quote, Profile, Research) may raise up to $4 billion in new capital, suggesting the firm could post its first quarterly loss since going public.
The news added to risk aversion stoked during the previous session after Standard & Poor's cut its credit ratings on Lehman, Merrill Lynch, Given the downgrades by S&P yesterday and the WSJ story with regards to Lehman, it's easy to see why risk aversion is rising," said Simon Derrick, head of currency research at Bank of New York Mellon.
In contrast, was benefiting from Eurogroup chairman Jean-Claude Juncker giving his backing to the European Central Bank's hawkish,
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