Monday, July 16, 2007

Dollar May Drop Versus Yen Before Report Forecast to Show Cooler Inflation

(Bloomberg) -- The dollar may drop against the yen
before U.S. government reports forecast to signal cooling
inflation and waning foreign demand for U.S. securities.

The U.S. currency dropped to a 26-year low against the
pound and the weakest since 1985 against the New Zealand dollar
yesterday on concern that weakness in U.S. housing will curb
economic growth and push the Federal Reserve to cut interest
rates. Investors bought yen yesterday in part on speculation
investors will exit risky trades because of mounting losses in
U.S. securities backed by subprime mortgage loans.


Read more at Bloomberg Currencies News

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