The U.S. dollar made gains against the euro as the currency lost its luster because the deteriorating market conditions and sent related exchange traded funds (ETFs) down.

Investors are simply not taking any risks and European banks are considering yet another rate cut, by about 0.75% as early as Thursday, reports GCI Financial for Daily Markets. Next year is not expected to get any smoother, so the European Central Bank is ready to take action despite the earlier two rate cuts in October.

The Japanese yen made advances against the U.S. dollar recently and the Japanese economy and currency had a foothold up until Lehman Brothers failed. Interest rates in Japan are already at historic lows and corporate profits are under pressure, so these measures will reflect in any movements within the global economy as well.