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"The dollar's decline is just the continuation of an ongoing trend," said Michael Rosenberg, head of foreign exchange strategy at Deutsche Bank in New York.
"There is a change in the mood," said Larry Kantor, the head of foreign exchange strategy in New York for J. P. Morgan.
Larry Kantor, global head of foreign exchange strategy at J. P. Morgan, said the dollar could rise to at least 135 yen by the end of 2002.
Larry Kantor, the global head of foreign exchange strategy at J. P. Morgan, said, "One of the things was some kind of psychological boost from the introduction of the euro bills and coins".
The chancellor of the Exchequer, Alistair Darling, "is going to have pull a rabbit out of the hat at November's pre-budget report or suffer a sovereign downgrade," said Chris Turner, head of foreign exchange strategy at ING.
Both Ms. Rhame and James McCormick, global head of foreign exchange strategy at Lehman Brothers, said disenchantment with the dollar is centered on forecasts that the American economy will grow about 2.5percentt next year.
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But Adam Cole, the head of foreign-exchange strategy at Royal Bank of Canada, argues that the causation has been the other way round the fall in the dollar makes it attractive to investors as a funding currency.It is hard to think of a parallel in history.
"This marks a major new round in the currency war," says Chris Turner, head of foreign-exchange strategy at ING. "Could not Japan also set a minimum yen/dollar exchange rate at 75 as a means to battle deflation?"The euro zone in particular may rue the Swiss move.
As David Bloom, head of foreign-exchange strategy at HSBC, a bank, says, "The dollar on its own may not be able to save the world but it will certainly buy these economies time".For emerging markets, the effect is probably less positive.
"It's all about vulnerability," said Hans Redeker, head of foreign-exchange strategy at Morgan Stanley.
Also, it outperforms traditional foreign exchange trading strategies, such as carry trades and moving average rules.
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