Dollar Gains for Second Week

The US dollar had another week of gains, posting the second weekly gain against other most-traded currencies, including the euro, the Great Britain pound and the Japanese yen.

The main theme for Forex traders were the same as in the previous week: the potential tampering of Federal Reserve’s quantitative easing. It was expected that the dollar would extend its rally. The currency did not disappoint.

Some policy makers attempted to soothe worries of investors, saying that reduction of stimulus is not near as the economy does not look healthy enough. Such comments made the greenback slow the rally for a short time, but ultimately the US currency resumed its advance by the end of the week.

EUR/USD dropped from 1.3089 to 1.3014 this week. GBP/USD went down from 1.5368 to 1.5208. USD/JPY was up from 97.88 to 99.17 over the week, rebounding from the low of 96.95.

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