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5/28/06

Bloomberg.com: Dollar May Drop on Concern U.S. Growth Will Trail Europe, Japan

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Dollar May Drop on Concern U.S. Growth Will Trail Europe, Japan

May 29 (Bloomberg) -- The dollar may decline against the euro and the yen on concern the U.S. will grow more slowly than Europe and Japan, a Bloomberg survey shows. Sixty-seven percent of the 51 traders, strategists and investors surveyed May 26 from Sydney to New York advised buying the yen against the U.S. currency. Fifty-one percent recommended purchasing the euro.

``The economies in Europe and Japan are booming,'' said Eric Darwell, a currency strategist in New York at Citigroup Inc., the third-biggest foreign exchange bank, according to Euromoney magazine. ``The market is less interested in the dollar because there are better economies abroad.''

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