The buck took a hit after the FOMC minutes as the Fed highlighted the very significant downside risks for the economy in the months ahead. The Fed also commented on the negative impacts on the economy from the dollar rebound in the second half of 2008, leading some to suspect a lower dollar is absolutely a part of the Fed strategy. Though I am more bullish than most on the dollar, it would be hard to argue with that logic, to be honest.

The buck has been stabilizing of late as USD/JPY rebounds back above the 94.00 level and EUR/USD dips back below 1.3500. Dealers note good demand from real money for USD/JPY again this afternoon.