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Dollar hits 26-year low against Sterling

Discussion in 'Forex Daily News & Outlook' started by prav, Jul 3, 2007.

  1. prav

    prav Moderator
    Staff Member

    Apr 28, 2007
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    The Dollar tumbled to a 26-year low against Sterling and declined across the board on Monday on continuing expectations that US interest rates will remain steady while borrowing costs rise overseas. The Dollar fell within 0.5% of a record low against the Euro, extending Friday's heavy losses in the wake of soft reports on US Consumer Price inflation and Personal Income and Spending. The Bank of England is expected to raise interest rates on Thursday. The European Central Bank, which is expected to leave interest rates on hold when it meets on Thursday, is also expected to tighten monetary policy in coming months, reducing the relative allure of the Dollar at a time when the Federal Reserve is expected to keep US interest rates on hold. Trade is expected to be thinner this week due to the July 4 Independence Day holiday in the United States, which comes ahead of Friday's closely watched US non-farm payrolls report.


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