Triggered by repeated corporate accounting scandals, the plunge in the U.S. stock market and the steep decline of the dollar have continued over the past two to three months.

But this trend appears to be nearing an end. U.S. stocks have fallen nearly 30 percent in the two months since mid-May.

The Dow Jones industrials, which once plunged to the 7,500 level, have rebounded and are fluctuating within the low range of the 8,000 level. Based on market trends, such fluctuations are often witnessed after the market has hit bottom.

Although the corporate accounting scandals may continue to spread through the U.S., investors appear to have already taken this into account.

As evidenced by Switzerland's abrupt interest rate cuts last week, there is a possibility that other governments may take concerted action to tackle the global stock market plunge.

Having lost public confidence, it is likely to take a long time for the stock markets to fully recover. However, the turmoil appears to have subsided to a certain extent.

The same thing can be said about the dollar, which has dropped nearly 15 percent against the yen and euro due to public distrust in the U.S. financial markets.

In the current situation, where the global economy is centered around the U.S. economy, the economic turmoil in the U.S. may trigger a temporary plunge in the dollar.

However, its ripple effects may negatively affect other countries' financial markets, and the dollar's exchange rate may eventually reach a standstill.

The recent jostle in the currency market is evidence of this.

The dollar has fluctuated rapidly, showing movements close to the average fluctuation range seen over a full year, meaning investors are likely to take a wait-and-see approach.

Further exchange-rate movements may be within a small range. The dollar is likely to be traded in the 115-120 range against the yen and in the 0.9700-1.0200 range against the euro.