Excerpt from: Forex
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| July 14, 2008 | | Greenback in forex trading | The US dollar is on the rise in currency trading on the FX market right now, thanks to comments made by Treasury Secretary Henry Paulson over the weekend.
Paulson offered a statement that the following actions have been authorized, and might be taken, to help shore up Fannie Mae and Freddie Mac:
- Government increases line of credit.
- Fed can make emergency loans.
- Government may purchase equity in the companies.
This sends the message that the government is likely to ensure that the two government chartered entities not fail, and this is providing some relief for the US dollar in currency trading, reports Bloomberg:
``It gives Fannie Mae and Freddie Mac a lease on life,''
said Michael Woolfolk, senior currency strategist in New York at
Bank of New York Mellon, of the Treasury's and Fed's actions.
``It does provide a temporary reprieve for the dollar.'' | Topic Tags: currency trading, currency trading FX market, Fannie Mae, forex trading, Freddie Mac, greenback forex trading, US dollar currency trading | |
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