If the US is headed for a recession, where should you put your money?

The US dollar rallied strongly for the first day in five, as news of substantial foreign investment in the downtrodden domestic banking titan Citigroup lifted hopes that international investors would seek to buy recently depreciated American assets.

The US dollar traded significantly lower against major trading counterparts, as a surprise Federal Reserve interest rate cut eased risk aversion across financial market.

The US dollar gained for the second consecutive trading day, as increasingly risk-averse global markets sought the safety of the world’s foremost reserve currency.

The US dollar saw fairly significant declines through late New York session trade, as disappointing economic data completely erased an earlier greenback rally.

The Japanese yen stole broader market headlines on the day, as a pronounced jump in risk aversion led it significantly higher against all major world currencies. The US dollar initially saw a bid on sharp European currency sell-offs, but a continued stock market rout pushed the dollar lower through time of writing.

The US dollar posted its strongest single-day gain since January, as a sharp rise in risk aversion led a flight to safety to the otherwise downtrodden greenback.

The US dollar is trading at a record low against the euro and everyone from traders to analysts will agree that the latest wave of selling was triggered by renewed concerns about the housing market and more specifically, the sub-prime sector. However the problems in housing may not be the only factor driving the dollar lower.

The US dollar remained almost squarely unchanged on a slow day of summer trade, with an empty calendar providing little reason to force noteworthy movements in price.

The dollar continued its losing ways through turn of July trade, as major counterparts breached significant highs against the downtrodden Greenback.