For the complete report in Businessweek click on this link
Europe May Bear Burden of Dollar's Swoon - by Brian Bremmer
Global investors are keying in on the surprising rout of the dollar in recent trading sessions. On Nov. 27, the Dow Jones Industrial Average tumbled 158.46 points, or 1.3%, in its most severe decline since July. Part of the reason (disappointing sales by Wal-Mart played a role, too) has been the dour outlook for the dollar, which could weigh down U.S. stocks for some time to come. The greenback has fallen to its lowest levels since March, 2005, when compared to a basket of major currencies.
Yet the biggest loser in any major realignment of the dollar likely will be the Europeans. It is the euro that has appreciated most dramatically against the dollar. It's up 10.9% vs. the greenback on the year. Key Asia currencies such as the yen, up 1.5% vs. the dollar this year, and the Chinese yuan (which trades in a narrow band against the U.S. and other foreign currencies) haven't moved much at all. The Korean won, up about 8.5% vs. the dollar, is the big exception.
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