For The Dollar, Sanity Is Back

A refreshing wave of sanity appears to be washing over the currency markets. During the past few weeks, the dollar has revived vis-a-vis the Japanese yen and even rallied a bit against the German mark. Central bankers have--unusual for them--artfully coordinated their intervention in the markets. Now, it's time for some follow-through. Japanese and German monetary authorities ought to ease interest rates some more, and Japanese investors ought to take advantage of the Finance Ministry's recent relaxation of rules covering investments in foreign securities.

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