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. Last Updated: 07/27/2016

Markets Touchy on Greenspan's Health




WASHINGTON -- The Federal Reserve denied a rumor Thursday that Chairman Alan Greenspan had a traffic accident, showing how important the health of the world's most powerful central banker is to financial markets.


After the rumor circulated in bond and foreign exchange markets, the U.S. central bank could not immediately confirm whether an accident had or had not occurred. It then later put out a denial and said all was well for the 74-year-old.


Also mentioned on financial web sites, the rumor appeared to weaken the dollar slightly and triggered a brief sell-off in long-dated U.S. Treasury bonds, which then quickly recovered.


Traders said the rumor surfaced as the yen strengthened to a two-month high against the dollar.


Financial markets are periodically beset by rumors about Greenspan's health. Greenspan was sworn in on Tuesday for a fourth four-year term as chairman of the Fed.