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Dollar basks in misfortune of other currencies
Published: February 21, 2009, 23:06
Dubai: The dollar continues to bask in the misfortune of the other major economies, benefitting from the "first-in-first-out" view. With the US economy among the earliest to have slid into recession, investors believe it would be the first to emerge from the downturn given a slew of aggressive measures taken to tackle the credit crisis.
Currency investors are likely to sell the euro in the coming week as troubles at eastern European banks threaten to further undermine the region's beleaguered financial sector.
The euro was hit hard by increasing worries about the prospect of a deep and prolonged recession in Eastern Europe as banks from the euro zone have some of the heftiest exposure to the region.
Moody's Investors Service jolted financial markets earlier in the week when it said banks in eastern Europe with large loan books face downgrades, a prospect that could also weigh on the ratings of their western parent companies.
Published: February 21, 2009, 23:06
Dubai: The dollar continues to bask in the misfortune of the other major economies, benefitting from the "first-in-first-out" view. With the US economy among the earliest to have slid into recession, investors believe it would be the first to emerge from the downturn given a slew of aggressive measures taken to tackle the credit crisis.
Currency investors are likely to sell the euro in the coming week as troubles at eastern European banks threaten to further undermine the region's beleaguered financial sector.
The euro was hit hard by increasing worries about the prospect of a deep and prolonged recession in Eastern Europe as banks from the euro zone have some of the heftiest exposure to the region.
Moody's Investors Service jolted financial markets earlier in the week when it said banks in eastern Europe with large loan books face downgrades, a prospect that could also weigh on the ratings of their western parent companies.
