In the face of the worsening financial crisis, the euro slumped. It suffered its biggest one day drop against the Japanese yen in nine years was and is at its lowest in 13 months against the US dollar, below $1.35.

One foreign exchange analyst said “It appears that European government are failing to grasp the real problem: Meanwhile, the price of US light crude dropped below $90 a barrel, it’s lowest price in eight months, pressured by expectations that the global credit crisis will bring a sharp fall in demand.

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