By the end of this month, the Federal Reserve will have completed its asset purchase program, bringing its second round of Quantitative Easing to an end. As QE2 draws to a close, it is worthwhile to consider how the dollar could react. When the first round of Quantitative Easing came to an end, we saw a massive dollar rally (see EUR/USD chart below). USD/JPY did not participate in the rally because of lingering concerns about the need for more stimulus (second chart). The dollar index on the other hand rallied as much as 10 percent as the greenback strengthened against high yielding currencies (third chart) – this suggests that once QE2 ends, we could see a more significant dollar rally.