US could be target of terrorist attack

The Dollar declined across the board last night, reaching 26-year low against sterling ahead of an upcoming U.S. national holiday on concern that the U.S. may be the target of the terrorist attack. Market ignored better than expected US manufacturing index. Instead, market turned its attention toward the weaker than expected US ISM price paid, indicating no inflation in the US. The euro was about 0.7% higher at 1.3635, and the low of the Japanese yen was at 122.09.