Monday, November 16, 2009

Dollar Trades Near 15-Month Low on View Rates to Stay Near Zero - Bloomberg.com

http://www.bloomberg.com/apps/news?pid=20601087&sid=ajQ3ngEa9YlI&pos=3
While a weak dollar means it is a good time to refinance your home if you can afford it, it also means that it will be more expensive to repay our loans to foreign countries.

" Nov. 17 (Bloomberg) -- The dollar traded near a 15-month low against the currencies of major U.S. trading partners on speculation Federal Reserve officials will today reiterate the central bank’s pledge to keep interest rates near zero.

The yen strengthened against 10 of its 16 most-traded counterparts as a rally in stocks lost momentum, damping demand for higher-yielding assets. Australia’s currency weakened from near the strongest level in 15 months after minutes from the central bank’s most recent meeting cast doubt on a third- straight increase in key lending rates.

“The dollar will continue to be used as a funding currency amid rising risk appetite,” said Yoh Nihei, trading group manager at Tokai Tokyo Securities Co. in Tokyo. “The mainstream trend remains intact. The Fed will keep low rates for a while.”

The dollar was at $1.4952 per euro as of 1:05 p.m. in Tokyo from $1.4970 yesterday in New York. The yen rose to 133.19 per euro from 133.33. The greenback traded at 89.06 yen from 89.05 yen, after falling to 88.76 yesterday, the lowest since Oct. 9..."

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