FX markets shrug off Kenya attacks

The dollar weakened slightly as news of the attacks -- a suicide bomb attack on an Israeli-owned hotel in Mombasa and a failed attempt to shoot down a commercial Israeli airliner -- came through on Thursday (November 28), but the impact was limited.

"There was a small reaction, but inflows are continuing to the US," said Gary Noone, senior currency analyst at MMS International in London. "Risk aversion has not increased and the US current account deficit is still being funded by inflows."

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