Over the last month, the USD has decline precipitously in value, to the extent that the currency is approaching a two-year low against the Euro, a 14-year low against the British Pound and an all-time low against the Chinese Yuan. Most economists had been predicting this decline for quite some time, and felt it was a matter of when it would happen- not if it would happen. With the release of US GDP data indicated that the US economy grew by a healthy clip last quarter, the decline in the Dollar was brought to a sudden halt. However, the news has already begun to dissipate in the markets and will likely soon be offset by dollar-negative news in the coming weeks. The Financial Times reports:

Analysts said that, while it might be something of a surprise that the dollar had failed to derive support from Mr Bernanke’s remarks, he might be in danger of “crying wolf” over US inflationary pressures.

Read More: Dollar relieved by economic growth