Strong Dollar Squeezes Commodities, Bank of Japan Puts ECB in a Bind

Sydney(Sharemasterindia.com): The US dollar powered to seven-year peaks against the yen on Monday and a two-year high on the euro, a punishing trend for commodities priced in dollars, with both gold and silver falling sharply.
Disappointing surveys out of China’s manufacturing and services sectors highlighted the relative health of the US economy, and piled pressure on other countries to ease monetary policy yet further.
The dollar came within a whisker of 113.00 yen in early trade, before taking a breather at 112.75. It has climbed over 3 per cent since the Bank of Japan stunned markets by doubling down on its already massive stimulus program.
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