Markets

Nov 25: Dollar decline - so what?

Minutes of the Federal Reserve's last policy meeting stated that it saw the dollar's decline as orderly. This was taken as a sign the central bank was relaxed about both the scale and the pace of its recent falls. With interest rates in the US at historically low levels, the greenback has taken on a new role as the funding currency of carry trades. Jennifer Hughes, senior markets correspondent, analyses what this means for the direction of the dollar against the other main carry trade funding currency, the yen.