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Dollar Falls Further
The US dollar is undergoing a dramatic depreciation. The USD index is now down for seven consecutive days, falling from highs of 99.80 to lows of 97.20s as of writing. The sell-off has been intensified late last week. This came in response to comments from Fed Chairman. Powell pointed to the potential for a return to easing this year in a bid to help buffer the economy against the damage from the ongoing coronavirus outbreak.
In an unscheduled statement released last week, Powell reassured the market that the Fed:
“will use our tools and act as appropriate to support the economy”.
The statement was released against a backdrop of further, heavy losses in equities/commodities markets and the US dollar alike.
Fed is Monitoring Developments
While Powell was keen to highlight that “the fundamentals of the US economy remain strong”, the Fed chairman went on to say:
“However, the coronavirus ...
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