Wednesday, July 11, 2007

Dollar May Weaken to 116 Yen on U.S. Housing Slump, Daiwa's Kameoka Says

(Bloomberg) -- The dollar may weaken 5 percent to
116 yen by year-end on speculation a housing slump will curb
consumption, increasing pressure on the Federal Reserve to lower
interest rates, said Daiwa Institute of Research in Tokyo.

Signs of a weakening economy may prompt traders to place
more bets the Fed will cut rates. The U.S. currency fell to a
record low against the euro yesterday after the Standard & Poor's
500 Index a day earlier posted its worst decline in a month on
concern mortgage losses will worsen a housing slowdown.


Read more at Bloomberg Currencies News

No comments: