Syria Drops U.S. Dollar Peg, United Arab Emirates Might Follow
June 6th, 2007Via: Gulf Times:
The UAE may be the next Middle Eastern country to stop pegging its exchange rate to the US dollar, according to trading in currency forwards.
The second-largest Arab economy may follow Syria and Kuwait, which both said in the past two weeks that they would dump the dollar peg to curb rising import costs and inflation.
Middle East currencies have been dragged lower by declines in the dollar, pushing up the cost of imports from Europe and Asia.
Posted in Economy | Top Of Page
Funny how interest rates in little New Zealand can trigger tremors in the whole market, even causing the US DOW JONES to dump.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a0OyXiHSmvVQ&refer=home
New Zealand Move’
“Investors took fright at the New Zealand move,” said Stuart Thomson, who manages 23 billion pounds ($45.5 billion) in bonds at Resolution Investment Management Ltd. in Glasgow, Scotland. “Global growth is too strong; yields have to rise. The trend is bearish.”