Friday, June 29, 2007

Dollar falls versus euro, yen at quarter end

(Reuters) - Demand for the dollar has been waning since Thursday, when the Federal Reserve left benchmark interest rates unchanged and said core inflation had eased a bit, boosting the view that overnight rates will remain at 5.25 percent for some time.




This helped depress implied volatility on currency options, a prerequisite for putting on carry trades, in which dealers borrow in low-yielding currencies and buy assets in units offering higher returns.


Read more at Reuters.com Hot Stocks News

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