Special Report: Global Financial Crisis
NEW YORK, Feb. 10 (Xinhua) -- The dollar fell against the yen but rose against the euro and the pound on Tuesday as investors seek safety after the U.S. government announced a new financial rescue plan.
U.S. Treasury Secretary Timothy Geithner outlined the new plan for stabilizing the financial system on Tuesday. In his speech, Geithner announced some key programs such as further injections of public capital into the banking system.
While the speech was widely anticipated, it was short on details. Beyond the expansion of term asset backed securities lending facility, the Treasury Secretary provided little detail on the specifics of how the programs would work or the amount of public capital that would be committed.
The new financial rescue plan lacked specifics it needed to be credible, analysts said. Demand for the dollar and the yen as safe haven increased as investors worried that the plan would fall short of reviving lending.
An 838 billion dollars economic stimulus package passed the Senate on Tuesday. U.S. president Obama said there was still work to be done to reconcile differences between the Senate version and an 819 billion dollars bill passed earlier by the House of Representatives.
The euro bought 1.2872 dollars in late New York trading compared with 1.3024 dollars it bought late Monday. The pound fell to 1.4486 dollars from 1.4916 dollars.
The dollar rose to 1.2484 Canadian dollars from 1.2188 Canadian dollars, and fell to 1.1586 Swiss francs from 1.1617 Swiss francs. It fell to 90.29 Japanese yen from 91.43 Japanese yen.