[anjali]

USD

The dollar fell against most major currencies on Tuesday, snapping a two day rally which was spurred on by thoughts of whether or not the US will be able to raise interest rates by the end of the year.

The decline came after the U.S. Treasury released a statement approving 10 of the country's biggest banks requests to repay the 68 billion dollars in government funds. Those funds were received as part of the Toxic Asset Relief Program (TARP) during the height of the financial crisis, several months ago. This move raised hopes that the worst could be over.

Nevertheless, investors and traders were growing sceptical that the Federal Reserve would raise rates by the end of 2009, after the Wall Street Journal published an article questioning the practicality of the Obama Government’s projected numbers.

At 10:00 PM GMT, the Dollar was trading down .95% to the Yen to 97.54, down 1.6% to the British Pound to 1.6309, down 1.4% to the Canadian Dollar to 1.0999, down 1.7% to the Australian Dollar to .8025, down 1.05% to the Kiwi to .6275 and down 1.35% to the Swiss Franc to 1.0768.

EUR

The euro traded sideways most of the session on Tuesday, after a data release showed a marked decline in German industrial output. The data suggested that the Germany, the largest economy in Europe, is still facing weak global demand for its goods.

There was a bright spot though for the Euro, after European Central Bank officials said that Latvia, which is one of the most troubled economies in Eastern Europe, may avoid devaluing its currency. There has been speculation for several weeks that Latvia might move to purposefully inflate their currency, in order to lower the real cost of their debt.

At 10:20 PM GMT, the Euro was trading up .17% to the Japanese Yen to 137.13, down .51% to the British Pound to .8613 after stronger than expected housing data came out of London, boosting the GBP, down .13% to the Canadian Dollar to 1.5489, down .47% to the Australian Dollar to 1.7527 and up .3% to the Swiss Franc to 1.5172.