Is the dollar dross?

BACKGROUND

The US dollar has repeatedly come under hammer blows to make new lows in terms of the Finex dollar basket and new highs against the euro, with the latter seemingly inexorably pushing towards the synthetic high of 1.4563 from March 1995. While further progress could be hampered - the imminence of G-8/IMF/World Bank meetings and eurozone verbals in particular could provide a temporary reality check - markets are looking increasingly askance at the US unit. The broad-based impact of the

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