Dollar selling intensified this week as economic data from the US continued to support the case for a further round of quantitative easing by the Federal Reserve.
The dollar has found scant support since the US central bank’s monetary policy meeting in September when Ben Bernanke, chairman, said in a statement after the meeting that the Fed would act “appropriately” should economic conditions worsen.
Investors have taken this to mean that another round of quantitative easing is on the way, probably at the Fed’s November meeting, and have been dollar bears ever since.
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