It seems to be a rule of this crisis that the more unconventional the policy announcements, the weaker the currency. So the dollar sold off significantly on the Fed’s announcement, here, of $300 billion of purchases of long-term Treasury bonds and an additional $750 billion of mortgage-backed securities. But it’s bold, and it may just work.

Meanwhile, the UK’s public finances continue to deteriorate. There was a current budget deficit of £1.8 billion last month, compared with a £4.6 billion surplus a year ago. So far in this fiscal year there is a current budget deficit of £43.8 billion, compared with just £2.1 billion in the corresponding period of 2007-8. Public sector net debt rose to 49% of GDP. More here.