Saturday, November 28, 2009

FOREX WEEK AHEAD: Dubai Debt Worries Could Revive Dollar

Dubai World's debt standstill could darken prospects for the euro and other risk-sensitive currencies next week, thereby underpinning a rebound for the dollar.

Concerns about the broader impact of the Dubai government holding company's request for a standstill on its roughly $60 billion in outstanding debt will continue to weigh on financial markets.

These worries, which calmed somewhat Friday, may prompt an extension of the rebound in haven currencies such as the dollar and the yen when trading volumes return to normal after a holiday-thinned week

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