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Dollar rose against majors on rising Treasury Yields

Discussion in 'Forex Daily News & Outlook' started by prav, Jun 8, 2007.

  1. prav

    prav Moderator
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    The Bank of England left its official interest rate on hold at 5.5% yesterday. While this was mostly expected by the market, some dealers said there was plenty of market chatter about a possible hike, especially because price pressures remain strong in the UK, which could warrant a hike. The Dollar rose against the Euro Thursday as a fall in US stocks and a rise in Treasury yields boosted demand for the Dollar, ?considered as a safe haven?. Currency markets were especially attentive to the higher interest rates in Treasury after the 10-year reached 5.14%, its highest level in nearly one year. While the Dollar's gains yesterday were modest against the Euro at 1.3427, the GbpUsd dropped significantly to 1.9747 intraday low, its lowest since May 31st.


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