Reading - Dollar rises

Reading - Dollar rises - Dollar rises BBC News The dollar...

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Dollar rises BBC News The dollar has risen against a basket of currencies after the US Federal Reserve's surprise increase in interest rates for emergency bank loans. The US central bank said late on Thursday that it was lifting its discount rate to 0.75%, from 0.5%. Analysts saw the move as a sign that the Fed could soon raise its other key lending rate. The dollar hit a nine-month high against the euro of $1.3477 before falling back to $1.3574. US stocks fell in early trading as investors feared any further rate rises could slow the economic recovery. However, inflation figures also released on Friday showed only a small increase in consumer prices. This calmed fears that interest rates could soon rise, and stocks bounced. The main Dow Jones index closed up 9.5 points at 10,402.35. European markets closed up slightly. 'Further normalisation' The Fed cited "continued improvement in financial market conditions" as the reason for its move.
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This note was uploaded on 04/03/2012 for the course ECO 365 taught by Professor Jordimondria during the Spring '08 term at University of Toronto.

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Reading - Dollar rises - Dollar rises BBC News The dollar...

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