Size of dollar fall surprises

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Ian Stannard, senior currency strategist at the bank, said US fundamentals had pointed to a sharp drop. "We were concerned that the size of the current account deficit was likely to continue rising. We looked closely at inflows to the economy and they were falling rapidly – a factor that much of the market failed to recognise." Stannard added that the downward trend of the greenback is also likely to be driven by a shift in investment patterns. He said: "A shift from portfolios is taking place,