Dollar steadies, eyes steepest weekly fall in 24 years

That's what happens when your central bank says it is going to print over a $trillion. The dollar is toast, got gold?-Lou

Dollar steadies, eyes steepest weekly fall in 24 years

LONDON, March 20 (Reuters) - The dollar inched higher on Friday, but was still on track for its biggest weekly drop in 24 years against a basket of currencies as investors feared the Federal Reserve's plans to buy longer-term government debt would undermine the value of the world's main reserve currency.

The euro reversed earlier gains, easing back from above $1.37 as investors booked profits on this week's sharp rally and some cited concerns about weaker euro zone members.

The dollar has fallen over 5 percent against the basket of currencies this week, heading for its biggest weekly decline since 1985.
A fall of 5.2 percent at the close later on Friday would also make this week's dollar plunge the biggest since 1973 when the Bretton Woods system of fixed exchange rates was finally abandoned.

"Although it's too early to say it's a turning point, the Fed's decision to go down the QE (quantitative easing) route may be the first step of things stabilising and finding a bottom. The recession will still be prolonged and deep but it's a step in the right direction," said Christian Lawrence, an FX strategist at RBC Capital Markets.

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http://www.reuters.com/article/wtUSInvestingNews/idUSLK21991720090320