Dollar getting rear end kicked again after IMF, Geithner comments

The G-20 gathering in Scotland over the weekend contained no dollar-supportive talk. If anything, Treasury Secretary Tim Geithner kicked the stool out from under the buck, declaring that "it's too early to lean against the recovery." That's code-speak for "We'll continue our easy money policies in place." Meanwhile, an IMF report (PDF link) that was released in conjunction with the gathering suggests the dollar carry trade will likely continue as the buck is still overvalued. The Dollar Index just hit a new cycle low of 74.94, while gold is up another $14 to $1,109 in the spot market.

Incidentally, I explained why the carry trade was happening and why it should continue almost two months ago. For a refresher, click here.