The dollar may drop against the euro and yen
The European Central Bank and Bank of Japan indicated they are preparing to raise interest rates, a Bloomberg News survey showed. Fifty-one percent of the 61 traders, strategists and investors surveyed on Oct. 7 from Sydney to New York advised selling the dollar against the euro, compared with 31 percent that recommended buying the U.S. currency. Fifty-seven percent predicted the dollar would drop versus the yen. Higher rates in Europe and Japan will erode the yield advantage that lured investors to the dollar, which rose for three straight quarters as the Federal Reserve increased interest rates. Survey participants for the first time in five weeks bet the euro would outperform the dollar after ECB President Jean-Claude Trichet said he's ready to lift rates at ``any time.``With the ECB and Bank of Japan coming into the picture, that would argue for the dollar slipping back,'' said Nic Pifer, head of global fixed income at Riversource Investments in Minneapolis, which manages $2.3 billion. ``The Fed continuing to tighten is supportive for the dollar, but it's not the new news.''
No comments:
Post a Comment