"Merrill cuts U.S. dollar view " USD BUY SIGNAL

SAN FRANCISCO (MarketWatch) -- Merrill Lynch analysts said Thursday they had revised their currency forecasts to reflect a weaker U.S. dollar over the near term, based on the view that a correction in riskier assets -- a category generally including stocks, commodities and emerging markets currencies -- has "already played out." The U.S. dollar and to a greater extent, the yen, have tended to benefit when investors fret about the economic outlook. The greenback edged up as stocks and oil faltered from mid-June to mid-July. Such conditions seem unlikely to reemerge soon, the analysts said. They now see the euro at $1.50 by December versus $1.38 in an earlier forecast. They expect the dollar to buy 105 yen by year-end, compared to 110 earlier. On Thursday, a broad rally in stocks sent the greenback sliding against its rivals except the yen. One euro bought $1.4075, while the dollar bought 95.54 yen. (Corrects Merrill's earlier dollar/yen forecast.)

I thought it was Bank of America now.


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