The impact of the dollar dive

foreign exchange

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Over the past three to four years, the value of the US dollar has tumbled by nearly 40% against the euro and around 30% against the Japanese yen, a fall which has been largely driven by three factors: the ballooning US current account deficit, the imbalance between North American saving and consumption, and inflation-adjusted short-term interest rates in the US that have been significantly below those of other major economies.

But while the weaker dollar is likely to prompt US corporate bond inv

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