France may issue a bond in US dollars next year, a trend that has been growing from other EU states this year. The rationale given is that the issuer can reach new investors, lower its effective interest rate, etc. The real reason is the state feels they can borrow dollars today and pay them back years down the road after they have depreciated. It’s a FX play.
EUR/USD has eased back to 1.4895 after testing Thursday’s high at 1.4915. Sell orders are layered up to 1.4950, traders report.
