USD surges, as risk aversion returns with a vengeance

USD: Higher, supported by safe haven flows as equity markets tumble JPY: Higher, supported in cross by a spike in risk aversion EUR: Lower, pressured by Trichet’s comment that rates may be cut 25 basis points next month CHF: Lower, downside limited by safe haven flows, threat of intervention is rising GBP: Lower, pressured by report of rising cost of UK bank bailout, CBI cuts growth forecast CAD and AUD: AUD & CAD lower, Australian PPI declines, tracking weaker equities and falling CRB