Dollar Falls as Credit Crisis Deepens

The dollar fell against most key currencies Wednesday as inter-bank lending seized up. Yesterday’s US announcement of an emergency rescue of American International Group Inc. (AIG) with an $85 billion bridge loan signals US intensifing concerns that a collapse could jeopadize the financial system. The TED spread rose to the highest level since the 1987 stock-market crash as investors fled to the relative safety of treasury and gold.



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