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Strategies & Market Trends : Strictly: Drilling II
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To: Louis V. Lambrecht who wrote (22689)12/5/2002 8:54:10 AM
From: sandeep  Read Replies (2) of 36161
 
The interest rate cut works in favor of the currency in medium term. The dollar got creamed due to the interest rate differential a few days ago post the 50 basis point cut. However, if the economic activity is increased due to a cut, money tends to follow to that region from outside and hence the currency appreciation in the medium term. Just imho. EUR is a buy against the dollar right now in my book.
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