The dollar may extend this year’s 12 percent climb against the euro even after Europe crafted a $1 trillion plan to rescue Greece and other debt-laden governments, said Deutsche Bank AG, the world’s biggest currency trader.
Japan is likely to intervene in the foreign-exchange market if the yen strengthens to the 75 level against the dollar again after reaching a postwar high last week, Koji Fukaya, chief currency strategist in Tokyo at Credit Suisse Group AG said in an interview. Investor trading will probably reflect nervousness and be driven by movements in U.S. stocks and comments by Japanese officials, he said.
Thailand’s interest-rate swaps fell to the lowest level in more than three years as concern that the nation’s political crisis will worsen an economic slowdown spurred bets of a further reduction in borrowing costs.
Costa Rica and Thailand joined a growing chorus of developing nations expressing alarm at the appreciation of their currencies as increased monetary easing in the U.S. and Japan spurs demand for higher-yielding assets.