Dollar Drops

The dollar is breaking out of its recent trading range of $1.26-$1.28 and has weakened to $1.30 vs. the Euro. Speculation that the Fed will buy more Treasury securities to further decrease medium-to-long term interest rates. Further, this would signal that the Fed has mixed feelings about the U.S. economy and wants interest rates to remain low to try and propel the economy. Traders and speculators moved into gold, francs and yen. Some are speculating that the Chinese yuan will continue to appreciate as well.