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Fed yield curve policy looms over greenback

The US dollar could come under more pressure should the Fed adopt yield curve control policies aimed at keeping funding costs low and boosting growth.

Robert Guy
Robert GuySenior Writer

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The world's reserve currency has gone from hero to zero in less than three months.

The US Dollar Index has tumbled 6 per cent from its around 102 on March 20 to a three-month low above 96, as the scramble for once scarce US dollars has petered out after the Federal Reserve flooded the world with liquidity and investors jettisoned safe havens like the greenback for riskier plays like the Australian dollar.

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Robert writes on companies and markets. He is a former New York and Shanghai correspondent, and has worked in Hong Kong. Email Robert at robertguy@afr.com.au

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    Original URL: https://www.afr.com/markets/equity-markets/fed-yield-curve-policy-looms-over-greenback-20200610-p55137