The Mighty U.S. Dollar Is Having a Wobble

The mighty U.S. Dollar is having a wobble, falling to its lowest level on a trade-weighted basis since March. It’s a sign that the economic effects of the crisis are waning around the world. Perhaps it’s time for the U.S. to rein in the unlimited economic stimulus, or at least keep some in reserve to fight specific fires rather than just ensuring market liquidity.

The Federal Reserve has saved the financial world with its unrelenting monetary packages, pumping in $3 trillion in the past three months. It has met the soaring global demand for dollars, the haven currency in a crisis, and propped up the U.S. economy and a large swath of the developing world exposed to dollar borrowing. With oil prices regaining their footing, the immediate danger of an emerging markets collapse has passed.