Give me a “D”; give me an “O” . . . US cheerleading for the dollar is as empty as it ever was. The US economy benefits as its weaker currency makes exports more competitive. But US consumers, buoyed by the nascent recovery are already buying more expensive imports, widening the US trade deficit in September. Treasury secretary Tim Geithner’s mantra that a strong dollar serves US interests is merely a nod to Asian exporters who are losing out to Chinese competitors as the renminbi – repegged to the dollar – follows the greenback down.

Pom-poms may be unnecessary though. There is limited scope for China to diversify away from dollar-denominated assets, as more pressure on the currency could threaten the renminbi peg and, thus, China’s ability to export its way out of trouble. Meanwhile, with the dollar down 15 per cent on a trade-weighted basis since equities bottomed in March, anti-buck sentiment has become so common that a short-term reversal is likely.