O.K., Everybody Follow The Bouncing Buck

Remember the racecar driver Jacques Villeneuve, who won the Indianapolis 500 this year? Given the thrills and spills going on with the dollar lately, he might fit right in with the currency-trading game. Just months after the dollar plunged 20% against the yen, it has recouped almost all its losses--courtesy of the Federal Reserve, the Bundesbank, and the Bank of Japan. On the morning of Aug. 15 alone, central banks pushed the greenback up by 4%, to 98 yen, barely shy of its level last December.

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