U.S.: The Dollar's Coming U Turn

With the current-account deficit starting to balloon, it's bound to happen

When the pall from the Asian crisis eventually lifts, currency traders are going to take a hard look at the damage Asia has done to the U.S. trade deficit. When they do, they will very likely come to the same market-jarring conclusion: "Sell the dollar!" The resulting flight to another currency--such as the new euro--could crimp stock prices, lift interest rates, and push up inflation.

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