April 29, 2011

WSJ: Officials Unfazed by Dollar Slide. “The U.S. dollar fell Thursday to its lowest point since the summer of 2008, but officials aren’t showing signs that they are alarmed by the currency’s descent or acting to stem it. . . . The Fed’s decision, coming as many central banks start to raise rates, prompted many investors to shed dollar-denominated holdings. Many investors worry the Fed’s easy-money policies—in which it also is pumping dollars into the financial system to keep interest rates low—are pushing down the value of the currency by adding to its supply, stoking inflationary pressures.”