Dollar up after U.S. Treasury help Fannie, Freddie on 100 Mortgages

The dollar is now up slightly after falling to a record low against the euro on Monday, this comes after news that the U.S. Treasury and Federal Reserve launched measures to step in and save the two biggest mortgages lenders in the U.S. Fannie Mae and Freddie Mac.

The Treasury has boosted both banks direct credit lines, this was a move that was important to the economy of the U.S. as both these banks supple mortgages to half the country, The Treasury has said that it would purchase their shares if they had to.

The ongoing problems with Fannie Mae and Freddie Mac is not just an isolated problem, just last week United States, federal regulators had to seize control of the troubled mortgage lender IndyMac Bancorp.

The news of these companies having troubles is not doing a lot for consumer confidence; as a result it had spooked dollar-holders. Many analysts are saying that the recovery of the dollar will depend on whether the U.S. initiatives were enough to assuage investors’ concerns over the financial health of both Fannie and Freddie.

If shares for both these mortgage lenders do improve, then we can expect to see the dollar rebound even further.

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