Archives|FOREIGN EXCHANGE.; Mixed Movement of Rates -- Holland, Greece and Norway Higher, Sterling and Francs Lower.
FOREIGN EXCHANGE.; Mixed Movement of Rates -- Holland, Greece and Norway Higher, Sterling and Francs Lower.
Mr Stheeman, who is chief executive of the Debt Management Office, told the BBC: "It's not so much the rate that we issue, it's more the direction and the movement of rates.
Many major companies manage their risks by placing clever bets on the movement of exchange rates, interest rates and prices of commodities.
They knew that banks were severely over-leveraged, indulged in tax avoidance at home and abroad, kept assets and liabilities off the balance sheets and gambled savers' monies on clever bets on the movement of exchange rates, interests rates, commodity prices and anything else that moved.
In another way, however, the movements of rates of pay have been an independent cause of the rising trend of prices.
So they will care about not only the current interest rates on American bonds, but also the likely movement of exchange rates in the future.
She said that if corporations responded to a slowing economy by reducing travel budgets, occupancy rates might fall further and the relentless upward movement of daily rates might slow or halt.
Chart: Chart: shows the movement of mortgage rates from 2004-2007 (Source: HSH Associates).
Several traders also said they tried to keep to a minimum any new positions that were an aggressive bet on the movement of interest rates.
The helpful movement of interest rates may be reinforced by action of the monetary authorities, who by appropriate open-market operations may cause short-term interest rates to rise above the level that they would have attained under market forces and thus increase the equilibrating movement of short-term funds.
