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Wednesday, May 31, 2006

DOLLAR-YEN: Carving out fresh highs for the day

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Carving out fresh highs for the day around Y112.46 as the
dollar retains a firm tone in the wake of the FOMC minutes with offers
expected around Y112.50 and stops just above. Should the stops get
flushed, further supply is expected from Y112.60/90 with traders
mindful of recent supply ahead of Y113.00 option barrier strike.

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