Comment on Federal Reserve, Quantitative Easing (tapering), Repo rate

Nithin Kamath commented on 21 Sep 2013, 03:33 PM

The very long term implication of QE in theory should mean gradual devaluation of US dollar.

However in the short term there are a lot of implicit factors supporting the dollar, things like commodities or international trade are dollar denominated and a lot of dominant forces stand to gain from dollar remaining at elevated levels. Also the US dollar is considered as a safe haven of sorts to park money in times of uncertainty.

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