Plosser: Dollar decline must be viewed in context of its rise during crisis

The Fed’s Plosser is downplaying the dollar’s dive, saying it must be seen in the context of its rise during the crisis.

Point taken, but don’t forget the dollar was at all-time lows on fears of a super-loose Fed as commodity markets bubbled, a situation almost exactly the same as the one in which we find ourselves today, except with a weakened First World economy.

Bottom line: Neither the Fed nor the ECB sound too concerned about the dollar at present levels. 1.6000 seems to be the line in the sand…EUR/USD trades now at 1.5105.