Recessions and refuges
The US dollar and the yen gained against the euro as worldwide and general recession arrived – so sparking an investor’s run for refuge in these old favorites (also in recession themselves, but that’s not quite how it works) – while exotics such as the forint, which had been doing business on the back of derivatives etc., fell back sharply.

Central bank interest rates, without exception, began a journey towards 0% – the US dollar lost value against the yen, which has had a low interest rate (0.5%) for the preceding decade – and therefore not so far to fall…

Sterling weakened
Over the second half of 2008, the euro showed its strongest rise against the pound since the multi-nation currency’s debut in 1999. Parity with sterling is a strong possibility in the first quarter of 2009, and suggestions are still being floated that UK businesses and shops should consider accepting Euros – even if central government doesn’t act.

The US dollar currency also gained overall against the Euro – reaching $1.6038 in July.

And this year…
EUR – Slovakia adopted the euro on 1st January 2009, so becoming the 16th member of the Eurozone.