Dollar Falls Against Euro as Inflation Eases, Industrial Production Stalls

(Bloomberg) -- The dollar fell the most against the
euro in two months on reports showing a measure of consumer
inflation rose less than economists forecast and industrial
production stalled last month.

The U.S. currency dropped versus all of its 16 most active
counterparts except the yen as the yield advantage of benchmark
Treasuries over comparable German bunds narrowed. The yen
weakened to an all-time low against the euro as Bank of Japan
Governor Toshihiko Fukui said the central bank needed to be
``more confident'' about price increases before raising rates.


Read more at Bloomberg Currencies News

Polish Bonds Fall for Second Week on Speculation Interest Rates Will Rise

(Bloomberg) -- Polish government bonds fell for a
second week on speculation the central bank may raise interest
rates to curb inflation.

Benchmark five- and 10-year bond yields hit nine-month highs
this week as faster-than-expected consumer price inflation put
pressure on the central bank to raise borrowing costs. Polish
bonds fell after former Federal Reserve Chairman Alan Greenspan
said mid-week that he expects an increase in U.S. yields and
greater premiums on emerging-market debt.


Read more at Bloomberg Emerging Markets News