A weak dollar is good news for the world or at list that is what Mr.Market thinks. Behind the global economy’s current revival is a returning appetite for risky investments, such as equities and corporate bonds.

Now that stockmarkets and economies have bounced back, dollar weakness has returned, causing a headache for countries with floating exchange rates.

Europe’s efforts to contain the dollar’s weakness have had rather less impact. This week the dollar slid to $1.50 to the € !!

In fact America needs a weak dollar to help revive its economy and reorient it towards exports and away from consumer spending. Since China and some other Asian countries track the dollar, the burden of exchange-rate adjustment falls on the euro.