NEWS / Foreign Exchange

High US home inventories a major concern

Former Federal Reserve Chairman Alan Greenspan said on Tuesday that falling U.S. home prices and high home inventories raised major concerns amid the ongoing turmoil in the subprime mortgage market. He added that the slide in the dollar was neutral for the economy, and that the currency would slide in the long run relative to East Asian currencies.

Gold near 28-year high

Gold was steady above USD 800 an ounce on Tuesday and within striking distance of a 28- year high hit the previous day, with worries in the U.S. credit market likely to ignite safehaven buying in coming days.