The Drag On The Dollar Is Made In Japan

It should be the best of times. Inflation is quiescent, employment is rising, and the U.S. economy is chugging smartly along. Yet the currency markets have the jitters: Since the beginning of the year, the dollar has fallen by some 12% against the yen. Could it be the embarrassing Whitewater hearings? The latest failure of trade talks with Japan? Or the rising odds of an invasion of Haiti?

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