U.S. Winning (Losing) Currency Wars

With anemic global growth, most central banks are in a race to the bottom in an attempt to devalue the country's domestic currency. Over the past year, the U.S. dollar has gained 16 percent versus a basket of 26 major trading partners. And U.S. exporters are beginning to feel the crunch. For example, Proctor & Gamble blamed a 31 percent drop in second quarter profits on the stronger U.S. dollar. The stronger dollar expanded the U.S. trade deficit to $46.6 billion, the highest level in two years.