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Dollar Stays Near 7 Month High |
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Dollar near seven-month high vs. euro; bonds edge up - May. 23, 2005
Page 1 of 2
Dollar stays near seven-month high
Economic growth keeps greenback steady against euro as Treasury prices edge slightly
higher.
May 23, 2005: 9:39 AM EDT
NEW YORK (CNN/Money) - The dollar steadied near a seven-month high against the
euro Monday as investors seemed optimistic that economic growth will encourage the
Federal Reserve to raise interest rates steadily this year.
Treasury prices edged slightly higher.
The euro bought $1.2555, down from $1.2565 late Friday, while the dollar bought ¥107.85,
down from ¥108.15 the previous session.
No economic reports are scheduled for release Monday, but a number of key releases are due
during the week, including Tuesday's release of the minutes of the Federal Open Market
Committee's May 3 meeting, which investors expect will confirm that the economy has pulled
out of the soft patch it hit earlier this year.
"Cyclically, the United States is looking in much better shape than the euro zone and it doesn't
have political uncertainty to contend with," Daragh Maher, senior currency strategist at Calyon,
told Reuters, referring to German Chancellor Gerhard Schroeder's call for early national
elections days before France's referendum on the European constitution.
Expectations that robust economic growth will encourage the Federal Reserve to raise interest
rates steadily this year has lifted the dollar 7 percent against the euro and 5 percent against
the yen since early January.
Rising interest rates generally help the dollar as they make dollar-denominated securities more
attractive to foreign investors.
In bond markets, the benchmark 10-year note rose 2/32 of a point to 100-9/32 to yield 4.12
percent, relatively unchanged from late Friday. The 30-year bond held steady at 114-9/32,
yielding 4.44 percent, also unchanged from the previous session. Bond prices and yields move
in opposite directions.
Prices for the five-year note gained 3/32 of a point to 100-2/32, yielding 3.86 percent, and the
two-year note edged up two ticks to 99-31/32, yielding 3.64.
http://cnnmoney.printthis.clickability.com/pt/cpt?action=cpt&title=Dollar+near+seven-mo... 5/23/2005
Dollar near seven-month high vs. euro; bonds edge up - May. 23, 2005
Page 2 of 2
Click here for bond charts.
-- from staff and wire reports
Find this article at:
http://money.cnn.com/2005/05/23/markets/bondcenter/bonds/index.htm
Check the box to include the list of links referenced in the article.
http://cnnmoney.printthis.clickability.com/pt/cpt?action=cpt&title=Dollar+near+seven-mo... 5/23/2005
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