With traders and investors in a risk-adverse mode, anything they're unsure of sends running for safety and cover, and it was no different today.
When U.S. Treasury Secretary Henry Paulson announced the Troubled Asset Relief Program (TARP) would now be adding those in the nonbanking sector to their focus, investors fleed to the U.S. dollar and yen for protection.
The underlying assumption being made was things may not be as fixable through TARP than they orginally thought, and unexpected problems may be hindering the effort.
Right after Paulson's remarks went across the news wires, the stampede to the yen and U.S. dollar began.
The dollar and yen remain the investment of choice for those seeking safety, although the yen is getting more activity and holding strong, as the dollar fell Wednesday to 94.61 yen from 97.60.
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