Dollar vol could be back

Despite late falls on Friday, the dollar was significantly up against major currencies, the yen and the euro, last week. The European currency dropped from $1.24/e to$1.20/e in the space of four days, pushing it to the bottom of its recent trading range.

Bankers said this aggressive pricing action went against a general trend for low volatility. "Option-implied volatility in euro/dollars has fallen dramatically in recent months because the market has not broken out of its range," said Steve