Tuesday, May 15, 2007

Currency Volatility Drops to Record on Forecasts That Dollar Will Decline

(Bloomberg) -- A growing consensus that the dollar will extend its drop has pushed the cost of options protecting against currency fluctuations to a record low.

Traders have stepped up bets on dollar declines after central banks in the U.S., the euro region and the U.K. didn't surprise investors with the outcome of meetings last week. The dollar touched a record low versus the euro last month and a 25- year low versus the pound.


Read more at Bloomberg Currencies News

No comments: