Published by Zeb Bham
The dollar has started strongly again this week as debt fears in Europe and Dubai sparked a flurry of forex hedging activity.
Shares on the Dubai stock exchange tumbled during the Asian trading session this morning after a report from Zawya Dow Jones claimed that Dubai World, the ailing real estate company, may offer its creditors as little as 60 cents on the dollar.
Speaking anonymously to Reuters, an investor at a large international bank, commented: "If anything is a surprise, it's in the figures. I thought they would have proposed a little better than 60 per cent. This doesn't look promising."
Although Dubai World was quick to distance itself from the claim, the report still sent shudders through the markets as traders eyed a halt to the nascent global economic recovery.
Meanwhile, the euro plummeted to a nine-month low against the dollar during foreign exchange trading this morning ahead of the upcoming crisis meeting to be held by EU leaders as they look to contain Greece's spiralling debt burden.
