FXstreet.com (Barcelona) - The dollar has suffered the worst week of the year after FED's plan to revive U.S. economy, yet could be put to trial this week, when Tim Geithner treasury secretary, finally announces the key details of the banking rescue plan this Monday, that would pump $1.15 trillion more into the economy, part of it through buying U.S. Treasury bonds. FED success could halt the spiral towards deflation and at the same time, lead to a slow rebound in stock markets, sending investors to high-yielding and greenback slowly down.
Dollar is slightly down compare to pass Friday's close against major rivals: Euro has reached 1.3635, Gbp 1.4477, Japanese Yen 95.60 while Swiss Franc remains hovering around 1.1240. If any, dollar could gain against Japanese Yen this week, as the Bank of Japan also announced that would increase its buying of government debt to 21.6 trillion yen. The statement announcing the board's decision said economic conditions in Japan have deteriorated significantly and are likely to continue deteriorating for the time being.