For all its fiscal warts and admittedly little potential for any nearby change in monetary policy, the dollar is staging a remarkable performance against its peers. The dollar staged a rally against the euro after a monthly report from Germany’s central bank warned over a dimmer growth outlook, while growth sensitive currencies limped to the sidelines after interest rate expectations were further dashed by a one-two combination of lesser inflation and a slide in retail sales north of the border. It would seem that investors are becoming increasingly concerned that the dollar isn’t the only currency struggling to check out from its stay at the Hotel California.
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