Dollar Bears Pare Bets as QE2 Attacks Prove Unfounded
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At a time when foreign officials and U.S. lawmakers are criticizing the Federal Reserve’s plan to buy Treasury bonds, the currency market is voting in favor of Ben S. Bernanke’s quantitative easing.
The Dollar Index measuring the currency’s performance against those of six major trading partners has climbed as much as 5.1 percent from its low this year on Nov. 4. Futures traders have slashed bets for a decline in the dollar against the euro, yen, Australian dollar and Swiss franc, data from the Commodities Futures Trading Commission in Washington show.