``There may be some second-guessing'' ahead of the Fed's
meeting tomorrow, said Brian Garvey, senior currency strategist
in Boston at State Street Global Markets, a unit of the world's
largest custodian of investor assets, valued at $10.7 trillion.
``We may have some slight buying back of dollars.''
Sixty-one percent of 46 traders, strategists and investors
surveyed by Bloomberg on Aug. 4 from Sydney to New York advised
selling the dollar against the euro this week. Fifty-four percent
said to sell the currency versus the yen.
Bill Gross, who manages Pimco's $93 billion Total Return
Fund, the world's largest bond fund, said in an interview on Aug.
4 from his office in Newport Beach, California, that a sliding
U.S. currency may erode overseas demand for long-term U.S.
Treasuries...
The euro may be buoyed after European Central Bank policy
maker Klaus Liebscher said the bank is ready to raise rates
further to keep faster economic growth and near-record oil prices
from spurring inflation.
``Upward risks to price stability haven't receded but rather
worsened,'' Liebscher said in an interview in Vienna on Aug. 4.
``If we see, based on the data, that a further tightening of the
relatively accommodative course is needed, then it will happen.''
The ECB raised its benchmark rate to 3 percent last week.
Investors expect the rate to rise to 3.50 percent by March,
futures trading shows.
