Dollar Drama Takes Nasty Turn

Against all odds, currency calculators could end up being fall's hottest accessory.

But, if you're shopping this weekend, don't get one made by Louis Vuitton, because European goods are more expensive than ever this season for anyone spending U.S. dollars. Indeed, European goods are getting more expensive for anyone whose money is pegged to the dollar.

Now that the Federal Reserve has made its move to stem the paralysis in the credit markets and subsequent economic weakness, investors are doing the cost-benefit analysis. In the short days following last Tuesday's cut, the costs of a weakened currency seem to outweigh the benefit of a resuming stock market rally. Another round of data, earnings and worldwide reaction will provide more details. ...