Exchange Rate Flu: How Bad?

It's weakening U.S. competitiveness

Many observers tend to blame the exploding U.S. trade deficit on the economic debacle in Asia. And there's little doubt that collapsing exports to the region, along with a pickup in imports, are the main factors behind America's deteriorating trade position. But a closer look at trade statistics suggests that something more may be at work: the erosion of U.S. competitiveness due to shifting currency exchange rates.

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