The U.S. Treasury overnight announced a temporary increase in lines of credit to Freddie Mac and Fannie Mae, and also pledged to purchase equity in both if needed. This has helped the dollar recover some of Friday's losses, when the euro had hit multi month highs on safe haven flows. EUR/USD peaked at an 11 week high of 1.5972, EUR/GBP a 1 month high of 0.8017, while EUR/JPY made a record high of 169.69. The dollar came under heavy selling pressure Friday as concerns grew over the health of Fannie Mae and Freddie Mac, and following news that one of the largest mortgage lenders, Indymac, was closed by regulators
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