Forex moves linked to liquidity levels
LONDON - Currency moves have been strongly correlated with liquidity levels since September, according to Barclays Capital's foreign exchange analysts.
According to the bank's FX quarterly review, released March 25, the currencies that have shed the most value since the collapse of Lehman Brothers were also the most illiquid currencies as of March 18.
The Australian, Canadian and New Zealand dollars, and sterling, were the most highly affected among the G-8, with liquidity levels of less than 40
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