Thursday, June 7, 2007

Dollar Advances Against Euro, Yen on Yield Premium, Interest Rate Outlook

(Bloomberg) -- The dollar advanced against the euro
and the yen as Treasury yields rose above 5 percent for the
first time since August and traders added to bets the Federal
Reserve will refrain from cutting interest rates this year.

The U.S. currency gained the most against the euro in more
than two weeks as the extra yield investors earn on 10-year
Treasuries over similar-maturity European debt was the widest in
almost two months. A U.S. government report today pointed to
resilience in the labor market.


Read more at Bloomberg Currencies News

No comments: