Wednesday, May 23, 2007

Dollar steadies ahead of US data, stocks eyed

(Reuters) - The dollar steadied on Thursday near a three-month high against the yen as investors awaited U.S. housing data later in the day that could stir more doubts about the possibility of a Federal Reserve rate cut this year.

Investors trimmed short positions in the yen early in the session after former Federal Reserve Chairman Alan Greenspan said he feared a "dramatic contraction" in Chinese stocks, stoking worries over a potential pull-back in Asian equity markets and an unwinding of carry trades.


Read more at Reuters Africa

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