The dollar's slide remains unstoppable. After U.S. President George W. Bush remarked that the unit's value should be determined by market forces, the currency rapidly plunged below 120 yen, despite the Bank of Japan's market intervention.
The dollar is losing ground not only against the yen but also the euro -- a situation that should thus be labeled "dollar-selling" instead of "yen-buying."
It has been triggered by various factors, including renewed fears over a fresh wave of terrorism, accounting scandals involving U.S. firms, and the prospect of a "twin deficit" revival, prompting investors to reroute funds that used to be focused on the U.S.