What’s the Buzz?
TORONTO — The U.S. dollar was broadly higher as reports circulated about the substantial size of the economic stimulus package being contemplated by President-elect Barack Obama.
The U.S. currency has been bolstered by news the incoming administration is considering proposals to stimulate the U.S. economy with a $775 billion stimulus package, including a $300 billion tax cut, analysts said.
“To the extent that there is any news behind it, I guess all we can really point to is the evolving Obama stimulus package,” said Adam Cole, head of foreign exchange strategy at RBC Capital Markets in London.
The large gains by the dollar also reflect continued illiquid conditions in currency markets, he added.
Liquidity is likely to remain thin in the next few sessions, he said.
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