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U.S. (Mostly) Wins With Strong Dollar
The forces pushing up the dollar, as discussed in the first two parts of this series, are likely to persist in the short run. Among them are deliberate devaluations of the euro and yen, weakness in commodity-driven currencies, slower growth in China, the carry trade, the dollar’s safe-haven appeal and developing-economy woes. The greenback is also likely to remain strong in the long run. To put it into perspective, the dollar reached a peak against major currencies in 1985, then slid 52 percentage points over the next 25 years. It's been rising since August 2011, yet has recovered only 8 percentage points of that ... (full story)