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Dollar Bottom Elusive Before
G-7; Bearish Bets Double
Bloomberg
Monday, April 7, 2008
Optimism for a dollar rebound that pervaded the currency
market at the start of the year is fading.
Futures traders doubled bets against the greenback in the past
two months, data from the Commodity Futures Trading Commission
in Washington show. Citigroup Inc., Deutsche Bank AG and Royal
Bank of Scotland Group Plc, which handle almost 40 percent of
global foreign exchange trading, say the currency may slump to
$1.65 per euro by October.
While the dollar rose April 1 when UBS AG and Lehman Brothers
Holdings Inc. said they're raising $19 billion to shore up their
capital, it retreated for the rest of the week after Federal Reserve
Chairman Ben S. Bernanke acknowledged for the first time that
a recession is possible. Officials of the Group of Seven nations
meet this week in Washington, and are unlikely to agree on a plan
to boost the currency because rising exports may be the only blessing
of a weak currency in a weakening economy.
(Article continues below)
``The dollar will continue to move lower in the next couple of
months until the U.S. economy improves markedly,'' said Adam Boyton,
senior currency strategist in New York at Deutsche Bank.
The Dollar Index, which measures the currency against six of
its main counterparts, tumbled the past two months after trading
little changed between October and mid-February. It's down 5.8
percent in 2008, after dropping 8.3 percent in each of the past
two years.
The dollar advanced 0.3 percent to $1.5691 per euro by 10:02
a.m. in London, following a 0.3 percent drop on April 4. It also
climbed 1.2 percent to 102.69 yen.
Full
article here.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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