The dollar has finally started to make a comeback, creeping up in yesterday’s trade against major currencies.

Meanwhile, a sharp sell off in commodities sent the Canadian dollar tumbling. The greenback climbed to 1.0102 Canadian dollars, up from 99.21 Canadian cents the previous day.

Yesterday in the equity markets miners, oil companies and metals producers were sent lower by a sell off metals and oil prices slumped. Oil dipped below the $100 mark and gold was plunged to $914.10 a troy ounce.

According to the Financial Times:

Traders said funds were deleveraging their positions, reducing risk exposures and moving into the safety of cash before the Easter break.

“It seems as if large-scale deleveraging and profit taking is occurring across many asset classes and commodities. Profitable and recently fashionable trades, are being caught up in this trend,” said John Reade of UBS.

“The Fed’s latest rate cuts is still good news for gold,” says Dominic Frisby in The Daily Reckoning UK.

“The move is inflationary. In its policy of ‘socialism for the rich’, the Fed is trying to bail out the banks and the stock markets. They just made money easier, when it is easy money that is at the root of all this mess. They are attempting to solve the problem with the very cause of the problem.

The intended consequence of this move is to increase the amount of dollars in circulation in order to ease the globally liquidity crisis. But the inevitable consequence of more of anything in circulation is a decrease in its exclusivity, its premium, its value, its purchasing power. The Fed have just made the long-term problems for the dollar – and by extension all paper currencies – even worse. Meanwhile, they have not increased the amount of gold in circulation. What they have done is bullish for gold, so sit tight.”