Dollar Damaged As the Fed Goes Shopping
21/05/2009 § Leave a comment
Today’s serious case of dollar damage was once again made courtesy of the nation’s central bank. The Fed’s purchase of $7.7 bln in 7 and 10-year treasuries in the morning, followed by purchases of $3.08 bln in Agency securities in the afternoon accelerated the dollar decline and the resulting rally in commodities –as was the case on March 18 when the Fed first announced purchases of long term treasuries.
Be sure to look at the chart.