In a big attempt to release liquidity into the market, the Federal Reserve is getting the help of the Swiss central bank, Bank of England and the ECB, as they are getting together to auction off unlimited dollar funds.
This is unique in history as past dollar swaps were always capped at a certain level. In this case funds auctioned will be unlimited.
Maturity dates for the funds will be offered for 7 days, 28 days, and 84 days for a fixed rate respectively.
These swaps have been one of the reasons the U.S. dollar has continued to strengthen in the last months.
The greenback fell today against the euro and pound, as well as a number of major Latin American currencies.
Today the Dow Jones Industrial Average rose by its highest one-day point total in history, gaining 936 points, to finish the session at 9387.61