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Currency players forced to pare US$ forecasts

Market turmoil and central banks' actions reverse currency rally

UPS AND DOWNS: Options markets show that the US dollar has only a 21 per cent probability of rising beyond the median analyst forecast of US$1.06 per euro by the end of the year, the lowest in three months.

New York

CURRENCY forecasters are getting steamrolled by the US$5.3 trillion a day market as traders all but abandon bets that monetary policy divergence between the world's major central banks will fuel a third year of US dollar gains.

Strategists have been left in a lurch as the