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Thousands of people are being evacuated from Lebanon, in an often traumatic
operation
described as one of the largest mass evacuations since World War II
[progreSS is inevitable]





Dollar Strengthens to 3 Month-High Against Yen as Israel Steps Up Attacks

July 17 (Bloomberg) -- The dollar surged to the highest level in almost
three months against the yen and strengthened versus the euro as investors
sought a haven from escalating violence in the Middle East.

The U.S. currency extended gains, posting its biggest one- day increase
versus the euro since April, after the dollar broke through levels that
triggered automatic orders to buy the currency.

``Increasing signs of geopolitical tensions benefited the dollar as people
went out of risky assets,'' said Shaun Osborne, chief currency strategist
at Scotia Capital Inc. in Toronto. ``In the short term, I am bullish on the
dollar.''

The dollar rose to 117.18 yen at 10:47 a.m. in New York from 116.12 on July
14. It earlier touched 117.28 yen, the strongest since April 21. The U.S.
currency rose for a fourth day to $1.2523 against the euro from $1.2652.
Japanese financial markets were shut for a public holiday.

The U.S. currency also gained against the British pound, Swiss franc and
high yielding currencies such as the Brazilian real. The dollar may
strengthen to $1.2480 and 117.40 yen to 117.50 yen over the course of this
week, said Osborne.

Israel stepped up attacks against Beirut today in its biggest military
campaign against Lebanon since 1982. Investors typically seek safety by
selling risky assets and buying U.S. Treasuries and gold during political
upheaval.

The U.S. currency may strengthen further if Federal Reserve Chairman Ben S.
Bernanke tells Congress this week that inflation is accelerating fast
enough to warrant further interest-rate increases, raising the attraction
of dollar assets. Bernanke will appear before the Senate Banking Committee
on July 19 and the House Financial Services Committee the following day to
present the Fed's semi-annual economic report to Congress.