A Good Example of Interest Rate Parity
According to this piece in the NYTimes (registration required),
The euro briefly traded at $1.35 against the dollar, with traders around the world betting that the dollar would fall further next year.and
But long-term interest rates, even though they remain extremely low, have been affected by the dollar's decline.
Analysts note that investors are now demanding higher yields from 10-year Treasury bonds than from comparable European bonds.
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