Monday, May 14, 2007

Weak dollar, excess cash help fuel M&A boom

May 11 - Reuters - Global financial markets awash in liquidity, due partly to a weak dollar, have spawned a flurry of mergers and acquisitions this year, and as long as the greenback remains soft the boom has further to run.

The weak dollar, which has been pressured by gloomy U.S. growth expectations and diminishing yield advantage over other major currencies, has triggered huge increases in foreign exchange reserves for countries such as China and Japan that don't want a soft dollar because it erodes their export competitiveness. Read More.

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