The U.S. may “welcome” carry trades in dollars, where investors get the greenback at low borrowing costs and invest it in another currency with higher interest rates, Credit Suisse Group AG said. “A weak dollar should be welcomed, since it signals a recovery in the global economy and financial markets,” said Hiromichi Shirakawa, chief economist at Credit Suisse in Tokyo. “The U.S. will likely welcome dollar carry trades.” Japan’s government may increase purchases of Treasuries if policy coordination between the nation and the U.S. is needed to stem the dollar’s decline, Shirakawa said. The Dollar Index traded near the lowest in one year after a Commerce Department report showed U.S. retail sales increased 2.7 percent last month following a revised 0.2 percent drop in July, adding to signs the recession is ending. The Dollar Index, which tracks the greenback against the euro, yen, pound, Canadian dollar, Swiss franc and Swedish krona, traded at 76.506 from 76.520 yesterday. It earlier hit 76.406, the lowest level since September 2008.

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