Sunday, April 1, 2007
More to come, more to come….
New York: The dollar dropped against the euro and the yen this week after the US added tariffs on imports from China, fueling concern the levies will reduce trade flow with the world’s biggest holder of foreign reserves. The US currency also fell against the yen on speculation mounting tension in the Mideast will lead investors to reduce holdings in riskier assets financed by loans in Japan. The tariff and Mideast concern yesterday offset US reports showing signs of a stronger economy and accelerating inflation. “The whiff of protectionism killed off the bullish sentiment on the dollar,” said Shaun Osborne, chief currency strategist in Toronto at TD Securities Inc.