US dollar scepticism
It is predicted that the dollar will weaken as scepticism about US monetary policy leads foreign investors to view it as a risky asset. The Fed and the Treasury have offered a lot of assurance about the market which has led to more uncertainty. Federal Reserve chairman Ben S. Bernanke has told Congress that even though the economy shows tentative signs of stabilization, the central bank intends to maintain an accommodative monetary policy for a prolonged period of time.
The Fed also mentioned in their report that policy will be tightened when the labour market improves, a recovery takes hold, and the pressures to hold down inflation diminish. Bernanke's report was detailed in laying out what it will take to pull out, but until there's a clear path to withdrawing, foreign investors are going to be demanding a risk premium.
Already the US currency has fallen over the past month against all 16 of the most traded currencies.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.