41. Higher rates relative to those in other countries tend to help a currency by providing better returns on short-term deposits and assets. 42. The central bank was reported buying dollars early in the trading day, but it did little to help the currency. 43. The currency was helped by reports that Singapore Prime Minister Goh Chok Tong had proposed to help Indonesia finance its imports. 44. Traders said the U.S. currency also was helped by increased speculation that Germany will need to cut interest rates as a result of weak employement data released Wednesday. 45. Traders said the U.S. currency also was helped by increased speculation that Germany will need to cut interest rates as a result of weak employment data released Wednesday. 46. In principle, higher interest rates help a currency by increasing demand for it among foreigners wanting good returns on their securities. 47. But Legge said this time the rise in the Fed rates could help the currency. 48. But they add that in the long run, a clarification of the Italian political situation could help the currency. 49. Statements by Bank of England governor Eddie George in Basel that he hoped sterling would pick up after its recent downtrend, also helped the currency. 50. The currency was helped by an announcement from the Bank of Japan of a liquidity injection, but analysts do not expect strong yen appreciation. |