Thursday, July 12, 2007

Dollar Falls on Speculation Subprime Mortgage Defaults Will Slow Economy

(Bloomberg) -- The dollar fell against the yen and
approached a record low against the euro on speculation subprime
mortgage defaults will curb growth in the U.S. economy.

``The bias is leaning toward dollar selling,'' said Takeshi
Tokita, vice president of foreign exchange sales at Mizuho
Corporate Bank in Tokyo. ``Subprime loan defaults are a deep-
rooted problem. People in Europe entering the currency market
are likely to reduce risky bets on dollar gains.''


Read more at Bloomberg Currencies News

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