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The Associated Press October 21, 2010, 4:20PM ET

Commodities retreat as dollar grows stronger

Commodities are retreating across the board as the dollar grows stronger and investors sell off some of their holdings to take profits.

Since commodities are priced in dollars, a stronger dollar makes them less attractive to buyers who use foreign currencies.

Investors also seem to be cautious ahead of next month's decision from the Federal Reserve about steps to stimulate the economy.

Most investors believe the policymakers will begin buying bonds in November, which will likely put more pressure on the U.S. dollar.

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