There was a swift reaction by the foreign exchange market to the news that the US had decided to pursue a policy of quantitative easing. The announcement, after the Federal Reserve’s open market committee meeting on March 18, sent the dollar into a rapid tailspin and ended a period of broad strength that had started in mid-December.
Euro/dollar soared five cents in the immediate aftermath, climbing from around 1.3000 to 1.3500; sterling was a big beneficiary and cable rose sharply from around 1.3800,
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