41. Higher rates can boost a currency by increasing the payback on bonds denominated in it. 42. Higher interest rates can boost a currency by increasing the payback on bonds denominated in it. 43. Higher rates tend to attract short-term deposits and investments, thus boosting a currency. 44. Increased interest in American bonds tends to boost the currency, as foreign investors and U.S. interests leaving overseas markets must first buy dollars to purchase the securities. 45. Meanwhile, trading companies and importers were heavy dollar buyers, further boosting the currency, one foreign trader said. 46. The currency has been boosted by post-election confidence and positive comments from the International Monetary Fund. 47. The expectations of better prospects for Japan nevertheless boosted Asian currencies including the peso, traders said. 48. The strengthening yen and profit-taking on the U.S. dollar also boosted Southeast Asian currencies in early trading. 49. Traders said persisting signs of a slowing U.S. economy, which could lead to a rate cut by the Federal Reserve, helped boost other currencies against the dollar. 50. A rise in interest rates tends to boost a currency, because investors are attracted by the higher returns. |