Description:Â Uncertainty over a fresh round of U.S. monetary easing weighed on the dollar on Friday, prompting investors in the options market to hedge against any volatility arising from the Federal Reserve decision.
Questions for discussion:Â
- What are the reasons reported for recent movements in these currencies?
- How should financial managers react to this activity?
- How should investors react to this activity?
- Where do you believe these currencies will be in six to twelve months time?
- Why do you believe this will happen?