Monday, May 25, 2009

TAKE-A-LOOK: US dollar at 2009 low, bonds down with supply ahead

The U.S. dollar dropped to its lowest level this year and government bonds fell further on Friday as concerns mounted about rising U.S. debt levels after investors questioned the strength of its AAA credit rating.
 The dollar, on track for its biggest weekly fall in two months, took the brunt of growing worries about the U.S. fiscal outlook after Standard & Poor's on Thursday said it might cut Britain's AAA credit rating because of soaring public debt.
 Yet U.S. stocks rose as investors snapped up shares of multinationals, including McDonald's Corp, in anticipation a weaker dollar would underpin profitability from abroad.

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