The dollar is losing ground against major currencies and the foreign-exchange rates are reflecting the relative strengths of the economies involved.
The dollar's recent weakness appears to be mainly attributable to changes in the United States. The euro-yen exchange rate has so far been stabler than either the dollar-yen or dollar-euro rates.
There are three major reasons behind the dollar's recent weakness. The first is the rise in accumulated external debts. The U.S. current account deficit, which is equivalent to 4 percent of the nation's gross domestic product, is expected to expand.