BIN LADEN’S DEATH DRIVES US DOLLAR


The U.S. dollar immediately strengthened on confirmation of Osama bin Laden’s death in Asian trading Monday.

After news broke, the dollar surged to 73.27 on the U.S. Dollar Index after trading at nearly a three-year low of 73.02. The index measures the greenback’s strength against a basket of six other major world currencies.

As of 3:30 p.m Hong Kong time, the dollar was trading at 73.17.

Commodities prices also reacted swiftly to the death of the 9/11 mastermind. Both Nymex and Brent crude fell indicating, at least temporarily, an easing of

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investor anxiety. Spot gold also declined as investors moved away from the safe haven.

Most stock markets across the region rallied on the news as well. Japan’s Nikkei closed at a post-quake high just above the psychological 10,000 mark, up 1.6% to 10,004. Markets in China, Hong Kong, Singapore and Thailand were closed for the International Labor Day holiday. In U.S. pre-trading, the Dow, NASDAQ and S&P futures looked poised to add gains with all stock index futures up. (cnn)

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