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EU: Currency manipulation probe launched

 |  October 7, 2013

The European Commission said in a live chat Monday that the regulator is looking into the foreign exchange market for evidence of collusion, say reports.

Commissioner Joaquin Almunia made the online announcement that the Commission has received reports of activity that could be considered in violation of competition law regarding the market, which is worth $5.3 trillion a day.

While information was scarce, Almunia said the probe is looking into “the possible manipulation of types of exchange rates” and is in a “very, very preliminary phase.”

The investigation is launched following suit of Swiss regulators, who announced last week the opening of their own probe into allegations of manipulation of foreign exchange rates.

According to one source, the US Commodity Futures Trading Commission is also looking into potential collusion within foreign currency markets.

Bloomberg reported last June that banks colluded to share market sensitive information regarding benchmark currency rates. Following the reports, the UK’s Financial Conduct Authority decided to review the claims.

Full Content: Bloomberg

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