Monday, July 23, 2007

Dollar Rebounds Against Euro, Pound as Charts Indicate Decline Is Too Fast

(Bloomberg) -- The dollar rebounded from a record
low versus the euro and a 26-year low versus the pound as charts
that some investors use to predict currency movements suggested
its decline was too rapid.

The currency also recovered versus the yen as U.S. and
European equities gained and risk appetite rose, prompting some
traders to use funds borrowed in Japan to buy higher-yielding
assets elsewhere. The dollar has dropped against 15 of the 16
most active currencies in the past month on concern subprime
mortgage defaults will hurt the U.S. economy.


Read more at Bloomberg Currencies News

No comments: