Posted by Zeb BhamThe foreign exchange market has shown support for the Federal Reserve's second round of quantitative easing, known as QE2, a report says.Forex dealers have shown ongoing support for the dollar over much of the month since the policy was announced, Bloomberg reports.According to the news provider the Dollar Index, which measures performance against six major partners, has risen by 5.1 per cent since it reached a low on November 4th.Federal Reserve chairman Ben Bernanke defended the move to pump $600 billion into the economy at a meeting in Frankfurt on Friday, saying that the QE2 policy helps to underpin the dollar and supports global recovery.The plan has attracted criticism from individuals in the US political system, as well as those from other countries. Concern had been raised that the move would flood emerging economies, pushing up their currencies.Major players such as China and Germany have also criticised QE2 over the past few weeks.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site