Friday, May 25, 2007

Dollar Set for Weekly Gain as Fed Interest-Rate Cut Expectations Diminish

(Bloomberg) -- The dollar headed for a fourth weekly
gain against the euro as signs of a recovery in the U.S. housing
market prompted traders to scale back expectations the Federal
Reserve will reduce interest rates.

The U.S. currency is poised for the longest stretch of weekly
gains in 15 months after a report showed new-home sales increased
the most in 14 years. Industry figures today will probably show
sales of previously owned homes held steady last month, after
slumping by the most in 18 years in April, according to a
Bloomberg survey of economists.


Read more at Bloomberg Currencies News

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