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#14 (permalink)

10-09-2007, 08:36 AM

flow5

Member

Join Date: Nov 2006

Posts: 91

ffr & exchange value of the dollar

The Board of Governors raised the ffr to 5.25 on June 29th 2006.

Then, the dollar moved sideways to irregularly lower (from 109.33 on 6/28/06 to 107.99 on 1/29/07); then declined sharply (without a change in the ffr), to 102.30 on 9/17/07).

The ffr was lowered on 9/18/07 (St. Louis Fed/Broad Indices) & the dollar has declined less (but was already falling), than the time period where the ffr was steady. There was only a very short-term impact with the drop in the ffr.

How are you going to tell if the dollar's movement was related to a change in the ffr or due to the seasonals?

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