1. Bonds slumped, dragging the dollar lower against major currencies, as signs of a brisk labor job market dampened optimism the Federal Reserve will cut interest rates. 2. Bonds also fell as concern about a possible rate increase in Germany dragged the dollar down to a three-week low against the mark. 3. Declines in stocks and bonds sometimes drag the dollar down because global investors who sell U.S. securities may convert the dollar proceeds into other currencies. 4. It could also help drag the dollar down against the yen as investors sell dollars for yen in order to repay their Japanese debts. 5. Part of the decline was attributable to trading in European currencies that dragged the dollar down as almost a side effect. 6. Slumping U.S. bonds also dragged the dollar down. 7. The dollar was little changed amid concern U.S. stocks may fall for a second day and drag the dollar lower again, traders said. 8. The dollar was also dragged down after Bundesbank council member Helmut Hesse encouraged talk of a German interest rate rise. 9. The dollar was dragged down further in New York trading by sagging U.S. stocks and bonds. 10. The dollar also was dragged down by sales of yen for marks. |