Currencies have become an increasing worry for bond investors as the focus on bank balance sheets has shifted, along with much of the debt, to sovereign balance sheets.
Market volatility has reflected continuing fears over sovereign debt and the ability of governments, especially in the Eurozone, to service their debts. The euro dipped from above 1.5 to the US dollar at the end of 2009 to below 1.23 at close of business on May 25.
Elsewhere, currencies have been changeable and hard to predict. T