Not only are investors getting out of the US dollar in favour of just about any other currency they can get their hands on, even hedge funds are lining up to bet against it.
According to the Telegraph the Commodity Futures Trading Company (CTFC) figures show that hedge funds have profited greatly out of the recent decline in value of the USD, using computer modelling techniques. It seems that they prefer the Euro and sterling with Â£7.2 billion being bet on a Euro recovery.
By the day of the Royal Wedding the dollar had reached a three year low against other currencies after dropping for five consecutive months. It is now 7.5% down in the first months of the year.
What has not helped is Ben Bernanke's first-of-its-kind press conference as the chairman of the Federal Reserve, where he confirmed that interest rates would remain low even though inflation would stay higher than desired. And while he was saying that the Fed cut its growth forecasts down to between 3.1-3.3% from the earlier forecast of 3.4-3.9%.
Earlier though hedge funds had already shorted the dollar by an extra Â£17.1 billion.
The chief currency strategist at Scotia Capital, Camilla Sutton, is quoted in the Telegraph as saying "It's an ongoing build of short-dollar positions overall. Generally, sentiment remains very negative against the dollar". And the managing director of Faros Trading, Douglas Borthwick, said this dollar selling was a "one-way bet with very little pullback".