Fri 26th Nov: Dollar flops as the traders go for shops

Dollar extended its fall for yet another day against the majors, as the non-dollar importers sit gasping and perspiring in expectation for a correction.
Traders, hedge funds and Central Governments, all of them seem to have lost faith in the World’s most dominating currency.
The euro climbed to a high of 1.3240 in a very thin trading (as US markets observe the Thanksgiving holiday), despite the German Business Community losing confidence (Index falling to 94.10 against 95.3 last month) due to the incessant rise in the domestic currency.
However, it is very clear that the markets have closed their eyes to any economic indicator being released from any corner of the world.
It appears that the bull - run in any non dollar currency would only stop if the community is convinced of the regular portfolio flows and possibility of a reduction in the deficit figures of the US.
Yen also moved to its multi year high of 102.40, despite a continued jaw-boning by the Government of Japan. It would take a heavy intervention by BoJ to stop this run.
We would advise the receivers of non-dollar currencies to start hedging their exposures, while the importers should keep a level to hedge their risk.