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Dollar bounces back

The dollar bounced back sharply in November, especially against the euro, as anxiety about the health of government finances increased dramatically in the peripheral economies of the euro-zone. US Treasury yields rose substantially in response to signs of improvement in the economic data and profit-taking in the wake of the Fed’s announcement of further monetary easing. Equity markets put in a mixed performance, with Japan outperforming as the yen ceded ground. The prices of oil and gold rose.

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