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Dollar Up, Bonds Down |
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Dollar extend rally on rate hike hopes; bonds fall - Mar. 28, 2005
Page 1 of 2
Dollar extends rally, bonds fall
Traders bet a string of reports due this week will prompt the Fed to consider faster rate
hikes.
March 28, 2005: 9:41 AM EST
NEW YORK (CNN/Money) - The dollar continued its climb Monday, reaching four-and-a-
half-month highs against the yen, amid speculation about faster interest rate hikes.
The dollar bought ¥107.08 early Monday, up from ¥106.36 late Friday. The euro, which fell to a
six week low against the dollar, bought $1.2877, down from $1.2953 late Friday.
Traders are betting a number of economic reports due this week -- including the March jobs
report, the final reading on fourth-quarter gross domestic product and an inflation indicator
watched by the Federal Reserve -- will prompt the Fed to raise interest rates further and faster
in the face of an expanding economy and rising inflation.
"Given the current sentiment in the market, there's probably a greater chance of the dollar
rallying on a strong number than the risk of any sort of sell-off if there is disappointment,"
Junya Tanase, a currency strategist at JPMorgan Chase in Tokyo, told Reuters.
Rising interest rates generally help the dollar as it makes dollar-denominated securities more
attractive to foreign investors.
In Treasuries, the 10-year note lost 7/32 of a point, to 95 even, to yield 4.63 percent, up from
4.60 percent late Thursday. The bond market was closed for Good Friday.
The last time the 10-year yield was above 4.60 percent was July 2004.
The 30-year bond fell 15/32 of a point to 107-7/32, to yield 4.88 percent, up from 4.84 percent
late Thursday. Bond prices and yields move in opposite directions.
The five-year note lost 5/32 of a point to yield 4.36 percent, while the two-year slipped two ticks
to yield 3.89 percent.
For how faster interest rate hikes would impact you, click here.
Find this article at:
http://money.cnn.com/2005/03/28/markets/bondcenter/bonds/index.htm
http://cnnmoney.printthis.clickability.com/pt/cpt?action=cpt&title=Dollar+extend+rally+o... 3/28/2005
Dollar extend rally on rate hike hopes; bonds fall - Mar. 28, 2005
Page 2 of 2
Check the box to include the list of links referenced in the article.
http://cnnmoney.printthis.clickability.com/pt/cpt?action=cpt&title=Dollar+extend+rally+o... 3/28/2005
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© 2002-2008 Opportunities In Options - All Rights Reserved |
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Although this information is believed to be correct and from reliable sources, no guarantees are being made to its accuracy. Past performance is not indicative of future results. All trading involves a risk of loss.
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