The value of the dollar in foreign exchange markets has been rising for several weeks, and is now at its highest level in 4 years. This flies in the face of many Fed critics who have been predicting its policies during this period would destroy the dollar's place as a reserve currency, with dire consequences for inflation and government borrowing costs. Is this trend likely to continue and how far might it go? Here the dollar's historic movements against the currencies of two major trading partners, the euro and the Japanese yen, offer some clues. The euro began trading at the start of 1999 at an exchange rate of 1.2 ... (full story)