Dollar vol could be back

- By FX Markets Staff
- @FXMarkets_
- 02 Aug 2004

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Despite late falls on Friday, the dollar was significantly up against major currencies, the yen and the euro, last week. The European currency dropped from $1.24/e to $1.20/e in the space of four days, pushing it to the bottom of its recent trading range.

Bankers said this aggressive pricing action went against a general trend for low volatility. "Option-implied volatility in euro/dollars has fallen dramatically in recent months because the market has not broken out of its range," said Steve

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