Leading fund managers including RWC income duo Ian Lance and Nick Purves have removed US dollar hedges on their portfolios in the view the currency has bottomed, leaving them at odds with currency specialists who predict further falls.
Oil prices have jumped to a two and a half year high on fresh fears about supply and a weaker dollar.
Veritas manager Ezra Sun looks at the impact QE2 will have on the Asian markets.
The dollar rose against major currencies yesterday following more upbeat US economic data, while the euro took a beating after Moody's placed Spain's ‘Aa1' credit rating on review for a possible downgrade.
Jeremy Cook, chief economist at foreign exchange brokers World First, gives his predictions for exchange rates in 2011.
Schroders chief economist Keith Wade has labelled the Federal Reserve's $600bn QE2 programme as an "aggressive act" to devalue the dollar.
Smith & Williamson has added euro and dollar share classes to its popular Short-Dated Corporate Bond fund.
Investec Asset Management's Paul Carr believes sterling is the most undervalued major global currency.
The US dollar has sunk to a fresh 15-year low against the yen after the G20 nations pledged to avoid a currency war.