The dollar took its steepest one-day drop in years as the financial crisis eroded the nation's basic measure of value, helping to drive U.S. stocks sharply lower and the dollar-based prices of oil and gold sharply higher.
The convergence of negative sentiment came as investors focused on the uncertainties in the Bush administration's emergency plan for a massive bailout of the financial system, outlined this weekend. Indications yesterday that the administration would need more time to iron out a compromise with Congress raised questions about what the plan will ultimately look like, even as investors tried to assess how and whether it would work.
The dollar yesterday plunged 2.2 percent against the euro -- its biggest one-day fall since January 2001. Some analysts predicted that if the dollar continues its dramatic tumble, the Bush administration would seek the assistance of foreign central banks to prop it up.
