· Since 1990 there has been a 65% (inverse) correlation between the value of the dollar against major currencies and the y/y change in nonoil import prices.

· Extreme dollar weakness against the Euro (17.4% of US trade) has been accompanied by lesser weakness against the yen (12.1% of trade) and sharp dollar improvement against the Canadian dollar (17.0% of trade).

· Analysis from the Federal Reserve Bank of San Francisco of Japanese Foreign Exchange Intervention can be found here.

· Against the Canadian dollar the US currency has rallied 2.5% this month but is down 14.1% y/y.

· Versus the UK pound, the dollar has weakened appreciably, down 2.6% just this month. 4.4% of US trade is with Great Britain.

· Against a broader basket of currencies the US dollar has fallen 1.3% this month (-8.5% y/y. The dollar has been flat-to-lower versus the Mexican peso (+10.0% y/y), the Chinese yuan (-0.04% y/y) and other Asian currencies. Over 40% of US foreign trade is denominated in these currencies.