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Banking panic leaves currency markets strangely unmoved

In a week dominated by headlines about bank failures and the risk of another financial crisis, resulting in extraordinary volatility in government bond markets as interest rate expectations have plunged, the foreign exchange market has been a haven of calm. Unusually for what is already a small banking crisis (and could well turn into a larger one), the US dollar has generally been on the backfoot, and is on track to end the week lower against most other G10 currencies. 

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