"Already limp, QE2 inflicts more damage to the greenback, says Mitul Kotecha, head of global FX strategy at Credit Agricole. Because of its weakness, the US dollar has effectively replaced the yen as the funding currency for carry trades, according to Kotecha, adding that Scandinavian and emerging-market currencies are likely to perform well against the US dollar. The British pound, Swiss franc and Yen are the likely laggards among G10 currencies, Kotecha believes."
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