Fortunately, in the medium term, the dollar's fortunes look decent against the euro and sterling as well, as the Fed is still seen as likely to hike rates sooner than its counterparts in Frankfurt and London.
The overall mood of risk aversion should continue to support the dollar, and there will still be expectations that the US will out-perform the euro zone over the coming months, which will tend to underpin the dollar.
This trend; however, will most likely put a damper on President Obama plans to double U.S. exports over the next five years, as the dollar now has the euro to contend with for the global export advantage.
"Reality doesn't bite, rather our perception of reality bites." ~ Anthony J. D'Angelo
Dian L. Chu, M.B.A., C.P.M. and Chartered Economist, is a market analyst and financial writer regularly contributing to several leading investment websites. Ms. Chu's work is also syndicated to media outlets worldwide. She blogs at Economic (
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