The dollar fell to its lowest in three weeks on Friday as hedge
funds sold the U.S. currency on growing concerns about the
looming fiscal problems in the United States which could drive
the economy into a recession.
The dollar dropped to 79.21 yen on trading platform
EBS, its lowest since Oct 19 and down 0.3 percent on the day.
Traders cited stop-loss sell orders below 79.20 yen.
The yen is the most sought after currency at times of
financial stress and doubts about an economic recovery.
The dollar's drop mirrored narrowing spreads between the
yields on two-year U.S. Treasuries and Japanese government
bonds. The currency pair has a robust relationship with that