Dollar hovers near seven-month lows,

QE3 is having its predictable impact on the US dollar. The dollar is now down around a 7-month low. The polar opposite to the US dollar is gold, so investors should be accumulating gold investments in response to this latest slump in the US dollar…

The dollar hovered near a seven-month low against major currencies on Monday after the Federal Reserve’s announcement of aggressive monetary easing last week dampened the outlook for the U.S. currency.Some near-term recovery could be likely, however, given the dollar’s 3 percent drop so far this month, which may have been too far, too fast. The move pushed the euro to a four-month high against the dollar and the yen to a seven-month high.

The Fed pledged last week to continue buying mortgage bonds until unemployment falls significantly. The aggressive move came a week after the European Central Bank unveiled a new bond-buying program to address the region’s debt crisis.

“The outlook for the dollar has definitely been damaged by the policy actions by both central banks — the Fed and the ECB,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

The dollar index, which measures the U.S. unit’s value against a basket of currencies, stood at 78.789 .DXY, not far from the 78.601 set on Friday, a level last seen in late February.

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