In an article for USA Today, writer David Lynch notes that the U.S. dollar has fallen to about the same level as it was just before the Lehman Brothers collapse in September 2008. (The dollar rallied strongly during the worldwide credit crisis and has since retraced that gain.) So far, the falling dollar has not been highly inflationary for the U.S. economy and has not needed to be defended by higher interest rates. Lynch's article explains why it is not so easy for the euro and the Chinese yuan to replace the U.S. dollar in the short-term as the world's reserve currency.
Click here for Lynch's article.