The US dollar is the leader on the foreign exchange market. The US dollar hit its highest against the euro and the yen. Investors were ready to face various market reactions ahead of the bond-buying program conducted by the ECB. One of the possible scenarios is the euro decrease against the US dollar. Moreover, the European currency continues to fall to new depths and it is trading nearly one for one against the US dollar. Most analysts consider that such exchange rate is likely to be as early as June. Having touched its low, the euro lost 1.5% and was trading at 1.0560 against the US dollar. Later, the European currency managed to gain ground and it means that a pause in decline is quite possible. The market is trying to balance the ECB’s strategy and the Fed’s intention to raise the interest rates. The ECB launched €1 trillion program of quantitative easing to revive the eurozone economy and remove the deflationary pressure. These actions provoked the US dollar appreciation. The yen edged down to 122 against the US dollar. Moreover, the Bank of Japan is poised to widen the program aimed at pumping liquidity into the country’s banks. Also dissension among the Policy Board members of the Bank of Japan was noted. In October during the voting on the QE extension, BoJ head Haruhiko Kuroda’s suggestion was approved by a margin of one vote.
