1.   Offshore dollar deposits are very close substitutes for domestic dollar deposits.

2.   The average of interbank offered rates for dollar deposits in the London Market based on quotations at five major banks.

3.   UK banks thus began to take dollar deposits to on lend in place of the restricted use of sterling.

4.   An interest rate increase would make the returns on dollar deposits more attractive, prompting investors to buy dollars.

5.   Another increase would increase the allure of dollar deposits and bonds, likely lifting the dollar further against the yen and mark.

6.   Another sign of doubt the Fed may not rush to trim overnight bank rates comes from Eurodollars, contracts for dollar deposits overseas.

7.   Another measure of expectations for interest levels comes from rates on contracts for Eurodollars, or overseas dollar deposits.

8.   Another sign traders are less concerned about a Fed rate increase comes from the market for Eurodollars, or overseas dollar deposits.

9.   A rise in U.S. interest rates would strengthen the dollar by making dollar deposits more alluring.

10.   Comparatively high U.S. rates make dollar deposits and bonds, and the dollars needed to pay for them, more attractive to global investors.