The U.S. dollar is heading toward a rough road ahead due to the continuation of quantitative easing programs implemented by the central bank of the globe’s largest economy, according to a senior broker with Daniel’s Trading.
Bloomberg reports U.S. Federal Reserve chairman Ben Bernanke indicated on Wednesday, as policy makers with the body he leads adjourned two days of meetings, that the economy-spurring measures are likely to continue this year. The $85 billion in monthly acquisitions of bonds aims to reduce the U.S.’ 7.8 percent jobless rate.
“Avoid the US Dollar – or short it – as it is not a safe haven asset despite many market observers’ protestations,” senior broker Kurt Pfafflin with Daniels Trading said. “The continued injections of quantitative easing should ultimately prove destructive to the Yankee greenback.”
Development and growth in the U.S. is set to run into “downside risks” that will persist even in the aftermath of relaxing worldwide financial market tumult, the policy makers noted in a statement.
MarketWatch reports the shared currency of the European Union lost value on Thursday against the U.S. dollar, which fell against other rival monetary units.
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