U.S. opens probe of currency market rigging
The U.S. Justice Department has opened a criminal investigation of possible manipulation of the $5.3 trillion-a-day foreign exchange market, a person familiar with the matter said.
The Federal Bureau of Investigation, which is also looking into alleged rigging of interest rates associated with the London interbank offered rate, or Libor, is in the early stages of its currency market probe, said the person, who asked not to be identified because the inquiry is confidential.
The U.S. investigation comes as the U.K. Financial Conduct Authority said in June it was reviewing potential manipulation of exchange rates.
That month, allegations that dealers at banks pooled information through instant messages and used client orders to move benchmark currency rates were reported by Bloomberg News. Regulators are probing the alleged abuse of financial benchmarks used in markets from oil to interest rate swaps by the firms that play a central role in setting them.
The U.S. Commodity Futures Trading Commission has also been reviewing possible currency market rigging, said a separate person.
-- Bloomberg News
Three-month low for price of gold
The price of gold fell to the lowest point in three months Friday as investors pile back into stocks.
Gold for December delivery lost $28.60, or 2.2 percent, to $1,268.00 an ounce Friday. It was the lowest price since late July. Silver fell 64 cents, or 2.9 percent, to $21.26 an ounce.
Precious metals analysts said the selling is likely tied to news that Republicans and Democrats are making progress toward increasing the country's borrowing authority, which would avert a default on the U.S. government's debt.
Investors sold precious metals, which are seen as safe haven investments, and piled into stocks.
-- Associated Press