uncertainty of the Federal Reserve's monetary policy and its impact on the U.S. dollar. Since the beginning of the year, we have seen some interesting developments in the foreign exchange market as the U.S. dollar has behaved very differently against all of the major currencies. We have seen significant dollar strength against the Japanese Yen and significant dollar weakness against the euro. While it can be said that country specific factors are driving the euro higher and the yen lower, it is also the uncertainty of the Fed's monetary policy that has led to the inconsistent performance of the U.S. dollar.
By Kathy Lien, Managing Director of FX Strategy for BK Asset Management
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