Dollar bloc down under pressure

Funds have tended to limit their currency trading in recent months to transactions related to mergers and acquisitions except for Asian Tiger currencies, in which active trading has continued.

Thin trading is partly responsible for the euro's fall against the dollar.

However, as investment flows into the US slow down, traders are beginning to look elsewhere for currency trading opportunities. Many are now looking at the weakness of the so-called "dollar bloc" currencies of Australia,

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