Investors Shun of refuge, sending Dollar Index at least 3 years

Whetted investor risk appetite pushed the US Dollar Index to its lowest point in 3 years, and analysts expect this further decline in the index is likely. The U.S. Dollar Index measures the value of the dollar against a basket of major currencies weighted, as reported at 3: 46 (js) in Tokyo, the index slipped to 73.898.DXY, a decrease of 0.6% and the lowest since August 2008 pricesignificantly just before the collapse of Lehman Brothers, which triggered the rush currency of refuge. Market players say that the move is being fueled by investor short covering the dollar before Easter holiday.

The increase in assets higher risk is attributed to a robust corporate profits, to the United States an indication that the world economy is moving forward despite the position of the Federal Reserve that the current policy of loose ultra is appropriate at this time. However, the Outlook for the US dollar remain dim in the long term with investors worrying about the impact a downgrading of debt could have on the ability of the Fed to buy bonds at the current low prices. The Dollar was under pressure from the majority of currencies; against the Euro, it loses 0.7% to trade at $1.4612 after struck a minimum of $ on the platform of trading BSE 1.4618.

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