Monday, May 2, 2011

Dollar mixed after brief rally


NEW YORK -The dollar is retreating again after a brief rally following news of the death of al-Qaida leader Osama bin Laden.

The dollar has fallen against a group of six major currencies for the past eight trading days. Investors expect that the Federal Reserve will keep interest rates super low and continue other stimulus efforts, while central banks overseas are raising interest rates. Higher rates tend to make currencies more attractive to investors seeking higher yields.

In morning trading Monday in New York, the euro is up to $1.4845 from $1.4839 late Friday. The dollar is giving back some of its overnight gains against the British pound and Japanese yen, but is higher against the two currencies than it was on Friday.

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