As far as underlying economic fundamentals are concerned, the euro now appears to be in better shape than the dollar and the yen.

While prospects remain cloudy for both the U.S. and Japanese economies, given the leeway Washington still has for stimulating the economy, the greenback appears to be on more solid footing than the yen.

At the Feb. 17 meeting of finance leaders from the Group of Seven industrial nations, calls for fiscal reflationary measures in Japan were conspicuously missing from the agenda.