Will Fed stimulus weaken the value of the dollar?
*Bloomberg, by Allison Bennett, March 16, 2012:
''The dollar weakened against most of its major peers after U.S.
inflation data fueled speculation Federal Reserve policy makers will
maintain economic stimulus.
The U.S. currency fell against the 17-nation euro as a gauge of
consumer prices excluding food and energy rose less than
forecast. Norway's krone advanced with crude oil even as the
central bank warned this week the currency may weaken. The yen
headed for its sixth weekly drop against the dollar. The pound
rallied as 10-year gilts yields were poised for the biggest weekly
advance in more than three years.
'We're seeing a correction in the dollar today as yields wilt a little
bit on disappointing CPI data and little bit weaker consumer
confidence,' said Boris Schlossberg, director of research at online
currency trader GFT Forex in New York. 'The krone is becoming the
ultimate oil-growth play and they are concerned about the unnatural
strength.'
The dollar fell 0.7 percent to $1.3168 per euro at 3:05 p.m. New York
time. It headed for a 0.4 percent weekly loss. The U.S.
currency declined 0.2 percent to 83.38 yen, paring a 1.1 percent weekly
increase.''
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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