Dollar Defies Greenspan Fix

Federal Reserve Chairman Alan Greenspan and his fellow central bankers may bear some responsibility for the dollar's decline -- but don't expect them to do much to end the trend. After all, the Fed didn't cut rates to such historic lows because the dollar was overvalued. And now that the dollar is on the wane, they've got bigger problems to deal with.

In theory, the historically low short-term interest rates the Fed kept in place over the past few years should have prompted global investors to move money to countries where they can earn a better return. So with the Fed now raising rates and the economy still doing well, shouldn't the dollar rally as those investors are lured back?

It's not working out that way this time because, to borrow from the classic Terry Gilliam movie Brazil, there's been a little complication with the dollar's complications. ...